SB 951 Testimony

The Private Equity Stakeholder Project (PESP) testifies in support of Oregon SB 951, arguing that private equity firms use physician management companies (PMCs) to bypass laws prohibiting the corporate practice of medicine. Citing various studies, PESP claims that private equity involvement in physician practices leads to increased healthcare costs for patients and dangerous market consolidation. The document highlights that in some metropolitan statistical areas, a single private equity firm controls over 50% of the physician practice market, and argues that limiting PMC control by non-physicians is necessary to protect clinical decision-making and competition.

• Private equity investment in physician management companies (PMCs) is linked to higher healthcare costs. A February 2022 JAMA study indicated that for patients receiving anesthesia in facilities with a PMC contract, costs rose by 16.5% and unit prices increased by 18.7%, with these figures rising to 26.0% and 25.6% respectively for private equity-owned PMCs.
• Private equity firms are rapidly consolidating physician practice markets. Between 2012 and 2021, the number of private equity acquisitions of physician practices grew from 75 to 484 deals. In 28% of metropolitan statistical areas (MSAs), one private equity firm holds more than 30% market share by full-time-equivalent physicians, and in 13% of MSAs, a single firm's share exceeds 50%.
• Market consolidation by private equity is associated with significant price increases across various medical specialties. Price increases range from 4% in primary care and dermatology to 16% in oncology. In markets where a single private equity firm controls over 30% of the market, price increases were further elevated for gastroenterology (18%), obstetrics and gynecology (16%), and dermatology (13%).
• Private equity firms use PMCs as a loophole to bypass Oregon's corporate practice of medicine (CPOM) laws, which bar firms from directly owning physician practices. PESP argues that SB 951 would address this by limiting the control of PMCs by investors who are not licensed physicians.

APA

Private Equity Stakeholder Project (2025). SB 951 Testimony. https://pestakeholder.org/wp-content/uploads/2025/06/4-29-25-Oregon-SB-951-Testimony-PESP.pdf

Chicago

Private Equity Stakeholder Project. SB 951 Testimony. 2025. https://pestakeholder.org/wp-content/uploads/2025/06/4-29-25-Oregon-SB-951-Testimony-PESP.pdf.

Wikipedia

{{cite press release |author=Private Equity Stakeholder Project |title=SB 951 Testimony |date=29 April 2025 |url=https://pestakeholder.org/wp-content/uploads/2025/06/4-29-25-Oregon-SB-951-Testimony-PESP.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{privateequitystakeholderproject2025951, author = {{Private Equity Stakeholder Project}}, title = {{SB 951 Testimony}}, publisher = {Private Equity Stakeholder Project}, year = {2025}, month = apr, url = {https://pestakeholder.org/wp-content/uploads/2025/06/4-29-25-Oregon-SB-951-Testimony-PESP.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }