Signed by Governor Tina Kotek

Vote Smart's Synopsis:

Votes to pass a bill that prohibits management companies from controlling how medical professionals make clinical decisions and limits certain contracts like noncompete and nondisclosure agreements with healthcare providers in Oregon.

Highlights:

• Prohibits any management services organization or their shareholders, directors, members, managers, officers, or employees from doing the following (Sec. 1):

• Owning or controlling a majority of shares in a professional medical entity with which it has a contract;

• Serving as a director, officer, employee, or contractor, or otherwise receiving compensation from the organization to manage a professional medical entity with which it has a contract;

• Exercising a proxy vote via the shares of another individual in a professional medical entity with which it has a contract;

• Controlling the sale or transfer of a professional medical entity’s shares, interests, or assets;

• Issuing shares of stock in the professional medical entity or its subsidiary or affiliate;

• Paying dividends from shares or an ownership interest in a professional medical entity;

• Acquiring or financing the acquisition of the majority of shares of a professional medial entity; or

• Exercising de facto control over any portion of a professional medical entity in a manner that affects its clinical decision making or quality of care.

• Specifies that a management services organization may still provide services and support to assist a professional medical entity in all business operations, so long as no services constitute an exercise of de facto control over the entity (Sec. 1).

• Authorizes professional corporations organized for the purpose of practicing medicine to remove a director or officer by means other than a majority vote of shareholders if the subject did one of the following (Sec. 2-5):

• Violated a duty of care;

• Was the subject of a disciplinary proceeding by the Oregon Medical Board which resulted in suspension or revocation of their medical license;

• Engaged in fraud or malfeasance;

• Resigned, separated, or was terminated from the corporation; or

• Failed to meet standards or criteria established for the position.

Full Bill Text

Vote Smart's Synopsis:

Votes to pass a bill that prohibits management companies from controlling how medical professionals make clinical decisions and limits certain contracts like noncompete and nondisclosure agreements with healthcare providers in Oregon.

Highlights:

• Prohibits any management services organization or their shareholders, directors, members, managers, officers, or employees from doing the following (Sec. 1):

• Owning or controlling a majority of shares in a professional medical entity with which it has a contract;

• Serving as a director, officer, employee, or contractor, or otherwise receiving compensation from the organization to manage a professional medical entity with which it has a contract;

• Exercising a proxy vote via the shares of another individual in a professional medical entity with which it has a contract;

• Controlling the sale or transfer of a professional medical entity’s shares, interests, or assets;

• Issuing shares of stock in the professional medical entity or its subsidiary or affiliate;

• Paying dividends from shares or an ownership interest in a professional medical entity;

• Acquiring or financing the acquisition of the majority of shares of a professional medial entity; or

• Exercising de facto control over any portion of a professional medical entity in a manner that affects its clinical decision making or quality of care.

• Specifies that a management services organization may still provide services and support to assist a professional medical entity in all business operations, so long as no services constitute an exercise of de facto control over the entity (Sec. 1).

• Authorizes professional corporations organized for the purpose of practicing medicine to remove a director or officer by means other than a majority vote of shareholders if the subject did one of the following (Sec. 2-5):

• Violated a duty of care;

• Was the subject of a disciplinary proceeding by the Oregon Medical Board which resulted in suspension or revocation of their medical license;

• Engaged in fraud or malfeasance;

• Resigned, separated, or was terminated from the corporation; or

• Failed to meet standards or criteria established for the position.

Full Bill Text