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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
MinorityReport
A-Engrossed
Senate Bill 951
Ordered by the Senate April 4
Including Senate Minority Report Amendments dated April 4
Sponsored by nonconcurring members of the Senate Committee on Health Care: Senators HAYDEN, LINTHICUM
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure. The statement includes a measure digest written in compliance with applicable readability standards.
Digest: Says that a person that gives money to, or owns part of, a firm that gives medical
care may not direct or control the way that a doctor or other health care provider does
medical work.Lets a health care provider dispute an act or practice of the person before
the provider’s licensing board. (Flesch Readability Score: 60.3).
[Digest: Stops people in charge of companies that do not do medical work from running both the
company and another entity that does medical work. Stops companies from telling their workers that
they cannot work for someone else, say that the company is bad or speak out about bad acts. Stops
companies from punishing those who speak out. (Flesch Readability Score: 61.3).]
[Prohibits a management services organization, an individual who works as an independent con-
tractor with a management services organization or a shareholder, director, officer or employee of a
management services organization from owning or controlling shares in, serving as a director or officer
of, being an employee of, working as an independent contractor with or otherwise managing, directing
the management of or participating in managing a professional medical entity with which the manage-
ment services organization has a contract for management services. Specifies what conduct constitutes
ownership or control of a professional medical entity.]
[Voids noncompetition agreements, nondisclosure agreements and nondisparagement agreements
between certain business entities and medical professionals, with specified exceptions, and prohibits the
business entities from retaliating against the medical professional for violating the void agreements.]
[Punishes violations of specified provisions of the Act as an unlawful trade practice under the
Unlawful Trade Practices Act.]
[Declares an emergency, effective on passage.]
Prohibits a health care investor or health care funder from directing or controlling the
clinical practice or professional medical judgment of a health care provider or limiting a
health care provider’s choices, decisions or judgments regarding certain aspects of health
care.
Allows a health care provider or professional medical entity that disputes an act or
practice of a health care investor or health care funder to petition the health care provider’s
licensing board to mediate the dispute or to make a finding that the act or practice violates
the Act.
Punishes a violation of the Act by a maximum of five years’ imprisonment, a fine of up
to $125,000, or both, if the Oregon Medical Board determines that the violation constitutes
an unlawful practice of medicine. Allows a health care provider’s licensing board to impose
a civil penalty of not more than $5,000 for each violation if the board determines that a
health care investor’s or health care funder’s act or practice falls within a health care
provider’s scope of practice.
A BILL FOR AN ACT
Relating to the practice of health care.
Be It Enacted by the People of the State of Oregon:
SECTION 1. (1) As used in this section:
(a) “Board” has the meaning given that term in ORS 413.164.
(b) “Health care funder” means a person that provides money, materials, in-kind services
or materials, capital investment or any other contribution of value to a professional medical
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 593 MR A-Eng. SB 951
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entity for the purpose of enabling the professional medical entity to engage in the practice
of medicine or to enable the professional medical entity to render professional health care
services to patients.
(c) “Health care investor” means a person, other than a health care provider, that owns
or controls shares or an ownership interest in a professional medical entity.
(d) “Health care provider” has the meaning given that term in ORS 413.164.
(e) “Professional medical entity” means:
(A) A professional corporation, as described in ORS 58.375;
(B) A professional corporation, as described in ORS 58.376; or
(C) A limited liability company or foreign limited liability company with authority to
transact business in this state, a partnership or foreign partnership with authority to
transact business in this state, a limited partnership or foreign limited partnership with au-
thority to transact business in this state or a limited liability partnership or foreign limited
liability partnership with authority to transact business in this state, any of which is or-
ganized for the purpose of practicing medicine or for the purpose of allowing physicians,
physician associates and nurse practitioners to jointly render professional health care ser-
vices.
(2) A health care investor or health care funder may not:
(a) Direct, control or attempt to direct or control the clinical practice or professional
medical judgment of a health care provider or limit a health care provider’s choices, deci-
sions or judgments with respect to:
(A) Developing a treatment plan;
(B) Prescribing or recommending medications or medical devices for a patient;
(C) Referring a patient to a specialist or other provider;
(D) Specifying staff-to-patient ratios in a clinical setting; or
(E) Whether to engage or not engage in any other activity that constitutes the practice
of medicine, as described in ORS 677.085, or that otherwise falls within the scope of practice
of a health care provider; or
(b) Restrict or attempt to restrict funding for a professional medical entity in a manner
that would affect a health care provider’s clinical practice or the nature or quality of health
care that the health care provider delivers to a patient.
(3)(a) A health care investor or health care funder that engages in an act or practice
prohibited under subsection (2) of this section:
(A) Violates ORS 677.080 (4) and commits a Class C felony, as provided in ORS 677.990 (2),
if the Oregon Medical Board determines that the violation constitutes an unlawful practice
of medicine; and
(B) Engages in an unlawful practice of a health care provider’s profession if a board that
issues a license to a health care provider determines that the health care funder’s or health
care investor’s act or practice falls within the scope of practice of a health care provider to
whom the board issued a license.
(b) A board that makes a determination described in paragraph (a)(B) of this subsection
may impose a civil penalty of not more than $5,000 for each instance of a violation and in the
case of a continuing violation may impose a civil penalty for each day of the violation for a
total amount that does not exceed $100,000.
(4)(a) A health care provider or professional medical entity that disputes an act or prac-
[2] MR A-Eng. SB 951
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tice of a health care investor or health care funder that is or may be prohibited under sub-
section (2) of this section may petition the board that issues the health care provider’s
license to mediate the dispute or to make a finding that an act or practice of the health care
investor or health care funder is a violation of subsection (2) of this section.
(b) If the Oregon Medical Board determines that an act or practice described in para-
graph (a) of this subsection is a violation of subsection (2) of this section, the Oregon Medical
Board may, in addition to and not in lieu of imposing a civil penalty under subsection (3)(b)
of this section, refer the matter to an appropriate law enforcement official for prosecution.
(c) A board may not consider a health care provider’s petition to the board under para-
graph (a) of this subsection a ground for suspending, revoking or refusing to grant or renew
a license or as grounds for discipline, unless the board finds that the health care provider
made the petition in bad faith or on false or fraudulent grounds.
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