Reflecting a broader national trend to limit the role of private equity and management services organizations (MSOs) in healthcare, Oregon has enacted one of the most restrictive laws in the country targeting the corporate practice of medicine (CPOM).
Oregon Governor Signs SB 951, Significantly Restricting Corporate Influence in Physician Practices
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On June 9, 2025, Governor Tina Kotek signed Senate Bill 951 into law, introducing sweeping limitations on corporate involvement in physician practices. The law sharply limits how management services organizations (MSOs), which are often backed by private equity, interact with professional practices, prohibiting control over clinical decisions, compensation, hiring, governance, and equity transactions.
Among other restrictions, MSOs and their agents are now prohibited from making or controlling key financial decisions for physician practices, including paying dividends, acquiring a majority equity interest, or financing such acquisitions. MSOs and their agents are also prohibited from exercising de facto control over a medical group’s operations in ways that impact clinical decision-making, including authority over staffing, compensation, clinical standards, coding, billing, and payor contracting.
Additionally, SB 951 essentially voids hybrid MSO-PC structures where ownership or control is shared. It also restricts the use of noncompetes and nondisclosures commonly embedded in PE-backed agreements.