Oregon Passes Toughest U.S. Law Against Private Equity in Healthcare

Oregon has enacted the nation’s strictest law limiting private equity in healthcare. Signed by Governor Tina Kotek, the law bars non-physicians from owning medical practices, closing a loophole that allowed corporations to list employed doctors as clinic owners. While it includes a three-year transition period, hospitals, tribal health centers, and behavioral health programs are exempt.

The move follows national concern over corporate influence in healthcare, heightened by the collapse of private equity-backed Steward Health and Prospect Medical. Similar laws have passed in Massachusetts, Indiana, and Washington.

Rep. Lisa Fragala cited issues at Eugene’s Oregon Medical Group—acquired by Optum in 2020—as a driving force. Doctors left, citing a profit-driven culture, leading to care disruptions.

While nurse associations supported the bill, some surgery centers opposed it, citing reliance on private investment. Senator Elizabeth Warren praised the law as a major safeguard.

18-06-2025