On June 9, 2025, Oregon Governor Tina Kotek signed Senate Bill 951 into law, establishing some of the strictest corporate practice of medicine prohibitions in the country. The new law directly targets management services organizations (MSOs) and the ways in which corporate investors—including private equity—structure their relationships with physician practices. With certain provisions already in effect, health care investors, MSOs, and medical practices operating in Oregon should promptly review their structures and agreements for compliance.

While we covered our initial impressions of the law in this previous blog post, Reed Smith partners Paul Pitts and James Hennessy and Summer Associate Kasper Jastrzebski have written a detailed Reed Smith in-depth article, that provides more analysis on the new law and what it means for industry members.

Reed Smith will continue to follow developments related to state regulation of corporate practice of medicine. If you have any questions please reach out to the authors or to the health care lawyers at Reed Smith.