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OregonSB 9512025 Regular SessionSenate

Relating to the practice of health care; and declaring an emergency.

Sponsored By: Ben Bowman (Democratic), Chris Gorsek (Democratic), Cyrus Javadi (Democratic), Deb Patterson (Democratic), Kathleen Taylor (Democratic), Kim Wallan (Republican), Lisa Fragala (Democratic), Lisa Reynolds (Democratic), Mark Owens (Republican), Nancy Nathanson (Democratic), Sarah McDonald (Democratic), Wlnsvey Campos (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 5 benefits, 0 costs, 0 mixed.

Fewer job restrictions for medical clinicians

The law generally voids noncompete agreements restricting medical licensees' practice of medicine or nursing with management companies, hospitals, or hospital-affiliated clinics. Covered licensees include physicians, physician assistants, nurse practitioners, and naturopathic physicians. Ownership exceptions include stakes of at least 10%, or smaller stakes when the licensee has not sold or transferred that interest. Certain medical-practice agreements are enforceable only within three years after hiring and require proof of a protected business interest. That interest includes documented employer investments worth at least 20% of the employee's annual salary, such as recruiting, bonuses, or training. Exceptions also cover relationships exempted by the management-company rules and licensees who do not directly provide care. The rule covers contracts entered into or renewed on or after the law took effect upon passage, subject to these exceptions.

Stronger reporting protections for medical clinicians

The law generally voids workplace nondisclosure and nondisparagement agreements between medical licensees and management companies, employing hospitals, or hospital-affiliated clinics. Agreements can apply after employment ends or as part of a negotiated settlement, but cannot block good-faith reports of suspected law violations. Separate legal claims for harm remain available. Reports can go to the organization, a hospital or affiliated clinic, or state or federal authorities. Management companies and medical practices cannot retaliate against licensees for breaking these agreements or making protected good-faith reports. Prohibited retaliation includes discipline, demotion, dismissal, or withholding work even when pay continues. These protections cover contracts entered into or renewed on or after the law took effect upon passage.

Limits on business control of care

The law bars management services companies and specified people connected to them from controlling contracted medical practices. This includes majority ownership, management roles, voting power, dividends, and clinical decisions. They cannot determine care through staffing, care standards, billing codes, or insurer negotiations. They can still provide back-office services that do not determine clinical care. Transfer restrictions are allowed for listed reasons, including license loss, federal program exclusion, fraud-related charges, agreement breaches, death, or disability. A treating provider can own up to 10% without violating the prohibitions if not a management-company principal and paid market rates. Exceptions cover specified telemedicine arrangements, coordinated care organizations, and medical entities acting as management companies. Other exemptions cover qualifying rural clinics, health centers, elder-care programs, behavioral health services, Tribal programs, and nonprofit providers. Some exceptions depend on ownership or agreements established before January 1, 2026. Beginning January 1, 2026, these rules cover entities formed or reorganized on or after the law took effect upon passage. Beginning January 1, 2029, they also cover earlier entities and ownership transfers in those entities. Conflicting contract terms are void; affected practices or clinicians can seek damages for money or property losses and, where allowed, attorney fees.

Naturopathic physicians gain stronger practice control

Naturopathic physicians must own a majority of each share class and hold a majority of their professional corporation's board seats. All officers must be naturopathic physicians, except the secretary or treasurer. Owners and employees cannot control a physician's professional judgment within the physician's licensed work. Removing a naturopathic physician director or officer generally requires a majority vote of the required naturopathic physician shareholders or directors. Exceptions allow removal for duty violations, license suspension or revocation, fraud, or listed misconduct. Transfers of operational control require a legally compliant shareholder agreement benefiting a majority of Oregon-licensed naturopathic physician shareholders exclusively. These rules cover contracts entered into or renewed on or after the law took effect upon passage.

Stronger clinician control of medical corporations

Medical professional corporations must remain majority-owned and controlled by physicians, with a physician majority on their boards. Removing physician directors or officers generally requires a majority vote of physician shareholders or directors, depending on the role. Similar voting protections cover required licensed directors in corporations for physicians, physician associates, or nurse practitioners. Removal without that vote is allowed for listed reasons, including duty violations, license loss, fraud, leaving employment, or failing position standards. Transfers of business, administrative, or clinical control require a legally compliant shareholder agreement benefiting a majority of the required clinician shareholders. For physician corporations, that agreement must be exclusively among and for the benefit of a majority of Oregon-licensed physician shareholders. These rules cover contracts entered into or renewed on or after the law took effect upon passage. Targeted exemptions protect qualifying rural, nonprofit, and safety-net providers.

Sponsors & Cosponsors

Sponsors

  • Ben Bowman

    Democratic • House

  • Chris Gorsek

    Democratic • Senate

  • Cyrus Javadi

    Democratic • House

  • Deb Patterson

    Democratic • Senate

  • Kathleen Taylor

    Democratic • Senate

  • Kim Wallan

    Republican • House

  • Lisa Fragala

    Democratic • House

  • Lisa Reynolds

    Democratic • Senate

  • Mark Owens

    Republican • House

  • Nancy Nathanson

    Democratic • House

  • Sarah McDonald

    Democratic • House

  • Wlnsvey Campos

    Democratic • Senate

Cosponsors

  • Emily McIntire

    Republican • House

  • Floyd Prozanski

    Democratic • Senate

  • James Manning Jr.

    Democratic • Senate

  • Khanh Pham

    Democratic • Senate

  • Mark Gamba

    Democratic • House

  • Mark Meek

    Democratic • Senate

  • Sen Woods

    Affiliation unavailable

  • Suzanne Weber

    Republican • Senate

  • Thuy Tran

    Democratic • House

  • Tom Andersen

    Democratic • House

  • Travis Nelson

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 84 • No: 45

House vote • 5/28/2025

Third reading. Carried by Bowman. Passed.

Yes: 41 • No: 16

House vote • 5/15/2025

Behavioral Health and Health Care: Heard and Reported Out

Yes: 7 • No: 2

Senate vote • 4/8/2025

Motion to substitute Minority Report for Committee Report failed.

Yes: 12 • No: 17

Senate vote • 4/8/2025

Third reading. Carried by Patterson. Passed.

Yes: 21 • No: 8

Senate vote • 3/25/2025

Health Care: Heard and Reported Out with Amendments

Yes: 3 • No: 2

Actions Timeline

  1. Effective date, June 9, 2025.

    6/20/2025Senate

  2. Chapter 295, 2025 Laws.

    6/20/2025Senate

  3. Governor signed.

    6/9/2025Senate

  4. Speaker signed.

    5/29/2025House

  5. President signed.

    5/29/2025Senate

  6. Vote explanation(s) filed by Nelson.

    5/28/2025House

  7. Third reading. Carried by Bowman. Passed.

    5/28/2025House

  8. In absence of motion to substitute Minority Report for Committee Report, bill advanced to third reading and final consideration.

    5/28/2025House

  9. Second reading.

    5/27/2025House

  10. Minority Recommendation: Do pass with amendments to the A-Eng bill and be printed B-Engrossed.

    5/22/2025House

  11. Recommendation: Do pass the A-Eng bill.

    5/22/2025House

  12. Work Session held.

    5/15/2025House

  13. Public Hearing held.

    5/1/2025House

  14. Public Hearing held.

    4/29/2025House

  15. Referred to Behavioral Health and Health Care.

    4/15/2025House

  16. First reading. Referred to Speaker's desk.

    4/9/2025House

  17. Broadman declared potential conflict of interest.

    4/8/2025Senate

  18. Third reading. Carried by Patterson. Passed.

    4/8/2025Senate

  19. Broadman declared potential conflict of interest.

    4/8/2025Senate

  20. Motion to substitute Minority Report for Committee Report failed.

    4/8/2025Senate

  21. Second reading.

    4/7/2025Senate

  22. Minority Recommendation: Do pass with different amendments. (Printed A-Eng. Minority)

    4/4/2025Senate

  23. Recommendation: Do pass with amendments. (Printed A-Eng).

    4/4/2025Senate

  24. Work Session held.

    3/25/2025Senate

  25. Public Hearing held.

    3/4/2025Senate

Bill Text

  • HBHHC Amendment -A11 (Proposed)

    5/15/2025

    PDF

  • HBHHC Amendment -A12 (Proposed)

    5/15/2025

    PDF

  • HBHHC Amendment -A13 (Proposed)

    5/15/2025

    PDF

  • HBHHC Amendment -AMR15 (Proposed)

    5/15/2025

    PDF

  • SHC Amendment -8 (Adopted)

    3/25/2025

    PDF

  • SHC Amendment -MR10 (Proposed)

    3/25/2025

    PDF

  • SHC Amendment -2 (Proposed)

    3/4/2025

    PDF

  • SHC Amendment -3 (Proposed)

    3/4/2025

    PDF

  • SHC Amendment -5 (Proposed)

    3/4/2025

    PDF

  • A-Engrossed

    PDF

  • Enrolled

    PDF

  • House Minority Amendments to A-Engrossed

    PDF

  • Introduced

    PDF

  • Minority Report A-Engrossed

    PDF

  • Minority Report to B-Engrossed

    PDF

  • Senate Amendments to Introduced

    PDF

  • Senate Minority Amendments to Introduced

    PDF

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