Oregon legislative efforts to curb private equity investment in health care may unintentionally prohibit more than that

Lexology July 29, 2024
Reed Smith LLP

The Oregon Legislative Assembly introduced House Bill 4130 earlier this year and became the latest in a growing number of states seeking to limit private equity investment in health care. The bill died on the Senate floor in March 2024, but many expect it will be reintroduced and passed in the next legislative session in 2025. Although H.B. 4130’s text and preamble do not expressly mention private equity, the bill targets models and arrangements closely associated with private equity, including management service organizations (MSOs) and stock transfer restriction agreements. Yet as drafted, H.B. 4130 would have prohibited many physician practice arrangements that have nothing to do with private equity.

H.B. 4130’s primary prohibition precluded a professional corporation (PC) shareholder, director,...

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