OregonHB 34102025 Regular SessionHouse

Relating to health care; and declaring an emergency.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Clinicians gain freedom from noncompete agreements

Agreements generally cannot stop licensed clinicians from practicing medicine or nursing, including agreements made before the original 2025 law took effect. Exceptions include ownership of at least 1.5%, a qualifying recruitment investment of at least 20% of annual salary, or work without direct patient care. Recruitment-based limits run no longer than five years after hire for direct care in an Oregon county designated as a health professional shortage area, or three years otherwise. The recruitment exception also requires the practice to have no management contract with a nonexempt management services organization. Most other listed contract changes apply to contracts made or renewed on or after the original 2025 law’s effective date.

Clinicians gain protection from workplace gag agreements

Management services organizations, hospitals, and hospital-affiliated clinics generally cannot enforce confidentiality or no-criticism agreements against the clinicians they employ. Exceptions apply after employment ends or when an agreement is part of a negotiated settlement. Even then, agreements cannot block good-faith reports of suspected state or federal legal violations to the employer or government authorities. The law preserves separate legal claims, such as libel or slander.

Medical practices gain protections from company control

Management services organizations—companies paid to handle a medical practice’s business tasks—and related people face limits on ownership and control. The law bars majority ownership or financing, proxy voting, certain management roles, and control over share transfers, with listed exceptions. It also bars control over staffing, workloads, coding, billing, prices, and contracts when that control affects clinical decisions or care quality. Exceptions include clinicians owning no more than 10%, receiving market-rate pay, and meeting professional duties and limits on management-company ties. A physician board-member exception requires less than 25% practice ownership, practice voting ownership below 49% in the management company, no board pay from that company, and specified governance and pre-January 1, 2024 arrangements. Other exceptions cover qualifying practice-owned management companies, telemedicine providers, hospitals, PACE, behavioral health, Tribal and Indian health, and care organizations; coordinated care organizations qualify based on ownership or management authority held before January 1, 2026. The rules first apply January 1, 2026, to Oregon entities formed on or after the original 2025 law’s effective date and qualifying transfers since that effective date. Existing entities, including specified reorganizations under common ownership and a shared management contract, come under the rules January 1, 2029; transfers on or after that date are also covered. Prohibited contract terms are unenforceable, and harmed clinicians or practices can sue for actual damages and court orders, with punitive damages and reasonable attorney fees and costs also available.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Rules

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 118 • No: 27

House vote • 6/24/2025

House concurred in Senate amendments and repassed bill.

Yes: 38 • No: 13

Senate vote • 6/20/2025

Third reading. Carried by Broadman. Passed.

Yes: 26 • No: 2

Senate vote • 6/17/2025

Rules: Heard and Reported Out with Amendments

Yes: 5 • No: 0

House vote • 6/10/2025

Third reading. Carried by Bowman. Passed.

Yes: 43 • No: 11

House vote • 6/4/2025

Rules: Heard and Reported Out with Amendments

Yes: 6 • No: 1

Actions Timeline

  1. Chapter 572, (2025 Laws): Effective date July 24, 2025.

    8/13/2025House
  2. Governor signed.

    7/24/2025House
  3. President signed.

    6/26/2025Senate
  4. Speaker signed.

    6/26/2025House
  5. House concurred in Senate amendments and repassed bill.

    6/24/2025House
  6. Third reading. Carried by Broadman. Passed.

    6/20/2025Senate
  7. Second reading.

    6/19/2025Senate
  8. Recommendation: Do pass with amendments to the A-Eng. bill. (Printed B-Eng.)

    6/18/2025Senate
  9. Work Session held.

    6/17/2025Senate
  10. Public Hearing held.

    6/16/2025Senate
  11. Referred to Rules.

    6/11/2025Senate
  12. First reading. Referred to President's desk.

    6/11/2025Senate
  13. Third reading. Carried by Bowman. Passed.

    6/10/2025House
  14. Second reading.

    6/9/2025House
  15. Recommendation: Do pass with amendments and be printed A-Engrossed.

    6/6/2025House
  16. Work Session held.

    6/4/2025House
  17. Public Hearing held.

    5/29/2025House
  18. Referred to Rules.

    1/30/2025House
  19. First reading. Referred to Speaker's desk.

    1/28/2025House

Bill Text

  • SRULES Amendment -A5 (Adopted)

    6/17/2025

  • SRULES Amendment -A4 (Proposed)

    6/16/2025

  • HRULES Amendment -3 (Adopted)

    6/4/2025

  • HRULES Amendment -3 (Proposed)

    5/29/2025

  • A-Engrossed

  • B-Engrossed

  • Enrolled

  • House Amendments to Introduced

  • Introduced

  • Senate Amendments to A-Engrossed

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