Signed by Governor Tina Kotek

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that amends corporate medicine legislation in Oregon to make physician noncompetition agreements retroactive.

Highlights:

• Prohibits any management services organization, their shareholders, or their employees from owning a majority of shares in a professional medical entity with which the management services organization has a contract (Sec. 1).

• Specifies that a physician who serves as a director or officer of a management services organization that is contracted with a medical entity which the physician owns less than 25% ownership interest in, and is a director or officer of, is exempt from the previous provisions if (Sec. 1):

• They own less than 49% of the ownership interest that has voting rights in the management services organization;

• They do not receive compensation as a director or officer of the management services organization;

• The management services organization requires a vote of more than the majority of shares for actions that materially affect the ownership interests;

• The management services organization and all of the medical entities with voting rights in the organization were incorporated prior to January 1, 2024; and

• The physician and all of the medical entities with voting rights in the management services organization complied with all other requirements of this paragraph prior to January 1, 2024 (Sec. 1).

• Authorizes noncompetition agreements between a medical licensee and another person that restricts the practice of medicine or nursing if the agreement has a term that is no longer than five years after the hiring date of the medical licensee, or three years after their hiring date if they do not directly provide medical services (Sec. 2).

• Specifies that the provisions of this Act apply to noncompetition agreements entered before, on, or after the effective date of chapter 295 of Oregon Laws 2025 (Sec. 3).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that amends corporate medicine legislation in Oregon to make physician noncompetition agreements retroactive.

Highlights:

• Prohibits any management services organization, their shareholders, or their employees from owning a majority of shares in a professional medical entity with which the management services organization has a contract (Sec. 1).

• Specifies that a physician who serves as a director or officer of a management services organization that is contracted with a medical entity which the physician owns less than 25% ownership interest in, and is a director or officer of, is exempt from the previous provisions if (Sec. 1):

• They own less than 49% of the ownership interest that has voting rights in the management services organization;

• They do not receive compensation as a director or officer of the management services organization;

• The management services organization requires a vote of more than the majority of shares for actions that materially affect the ownership interests;

• The management services organization and all of the medical entities with voting rights in the organization were incorporated prior to January 1, 2024; and

• The physician and all of the medical entities with voting rights in the management services organization complied with all other requirements of this paragraph prior to January 1, 2024 (Sec. 1).

• Authorizes noncompetition agreements between a medical licensee and another person that restricts the practice of medicine or nursing if the agreement has a term that is no longer than five years after the hiring date of the medical licensee, or three years after their hiring date if they do not directly provide medical services (Sec. 2).

• Specifies that the provisions of this Act apply to noncompetition agreements entered before, on, or after the effective date of chapter 295 of Oregon Laws 2025 (Sec. 3).

Full Bill Text