Lexology June 23, 2025
On June 9th, 2025, Oregon enacted Senate Bill 951 [1] (the “Bill”), a law significantly limiting how management service organizations (“MSOs”), specifically those backed by private equity firms, may engage with physician practices. The Bill cites as its purposes the health, safety and welfare of residents and the desire for medical practitioners to exercise medical judgment free from interference from non-healthcare entities that may push for cost-cutting and profit-making.
Summary:
SB 951 prevents MSOs (defined as an “entity that under written agreement, and in return for compensation, provides management services to a medical entity”) and their affiliates such as shareholders, directors, and employees from owning or controlling physician practices and having operating control over physician practices [2]. Under the Bill...
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