Oregon Passes Strictest Prohibition on Corporate Control of Medicine in the Country

Last year, the Oregon Statehouse passed a bill aimed at restoring the ban on the corporate practice of medicine (CPOM) that has been in place in Oregon for decades. The bill would have prohibited private equity and corporate conglomerates from owning or controlling medical practices, ensuring that medical professionals, not corporate executives, make medical decisions. However, the bill stalled in the Senate due to Republican concerns about "unintended consequences." The state was then hit by a series of "unintended consequences" of corporatized medicine, including primary care practices being hacked and clinics being forced to request exemptions from health department review processes.

Key Takeaways:

• The Oregon Statehouse passed a bill aimed at restoring the ban on the corporate practice of medicine (CPOM) that has been in place in Oregon for decades.
• The bill would have prohibited private equity and corporate conglomerates from owning or controlling medical practices.
• The bill stalled in the Senate due to Republican concerns about "unintended consequences."
• Primary care practices in Oregon began to realize they were hacked and vulnerable to cyberattacks.
• Clinics were forced to request exemptions from health department review processes.
• The bill ultimately died due to a perceived "process death" in early March.
• The state was hit by a series of "unintended consequences" of corporatized medicine.
• A large primary care practice in Corvallis, Oregon held an emergency meeting of its physician-shareholders to work without pay to conserve cash for staff salaries.
• The practice was in the process of being sold to UnitedHealth's medical practice arm, Optum.
• Patients were informed they had been terminated as patients, and doctors described feeling like "zombies" due to the workplace becoming dysfunctional.
• Doctors were told not to alert patients to their departures due to non-compete agreements.
• Patients were taught to communicate with the practice online, and phone systems were disconnected to force administrative staff to cut costs.
• The Oregon Health Authority review found that despite Optum's cost-cutting, the "cost of care" for Oregon Medical Group patients rose 6.5 percent in 2024.
• The bill banned non-competes for health care practitioners to prevent the OMG situation from repeating.
• The bill strengthened the ban on corporate control of medicine by requiring all clinics to comply with its requirements within three years.
• Democratic governors in other states have failed to take action against private equity heists and pharmaceutical abuse.
• The passage of the Oregon bill has sparked reforms in other states, including Indiana, Massachusetts, and Pennsylvania.

Statistics:

• 6.5 percent: The rise in the "cost of care" for Oregon Medical Group patients in 2024.
• 85: The number of doctors, regulators, and health care executives who attended the first Zoom session to discuss the bill.
• 41-16: The vote in the House to pass the bill.
• 1947: The year the CPOM ban was first implemented in Oregon.
• $2 billion: The amount of fraudulent dividends and fees extracted by private equity looters from hospital chains Prospect Health and Steward Health.
• 12: The number of safety net hospitals shut down by private equity looters.
• 2005: The year the "straw doctor" loophole was first circumvented in Oregon.
• $800 billion: The proposed cut from the budget for Medicaid, vaccines, and fluoridated water.
• $2 billion: The amount extracted by private equity looters from hospital chains Prospect Health and Steward Health.

Sources:

• "The attack of the straw doctors" by David Dayen (ProPublica, February 2024)
• "What killed the Oregon effort to curb corporate medicine?" by Maureen Tkacik (The Lund Report, March 2024)
• "The cyberattack that's roiling healthcare" by Melanie Evans (The Wall Street Journal, March 2024)
• "The story of UnitedHealth's exploits in Oregon" by David Dayen (Prospect, March 2024)
• "Did Luigi save UnitedHealth's case?" by David Dayen (Prospect, March 2024)
• "The story of Lisa Fragala, an Oregon Medical Group patient" by David Dayen (Prospect, March 2024)
• "Oregon Health Authority review" (January 2024)
• "The impact of the bill on Optum and the Oregon Medical Group" by David Dayen (Prospect, March 2024)
• "The bill's passage comes amid an otherwise bleak year for American physicians" by David Dayen (Prospect, April 2024)
• "The story of UnitedHealth's Medicare fraud investigation" by Lucette Lagnado (The Wall Street Journal, May 2024)
• "The story of Luigi Mangione, an insurance company CEO" by David Dayen (Prospect, March 2024)
• "The impact of the bill on the private equity industry" by David Dayen (Prospect, June 2024)