Timothy J. Murphy, Member of the Firm in the Health Care & Life Sciences practice, in the firm’s Boston office, was quoted in Law360 Healthcare Authority, in “Oregon's Corporate Ownership Law Puts PE at Crossroads,” by Yeji Jesse Lee. (Read the full version – subscription required.)
Following is an excerpt:
A new law in Oregon is leaving private equity firms and other organizations at a crossroads as they try to figure out how to navigate stricter rules focused on corporate ownership of healthcare practices.
Senate Bill 951, signed into law by Oregon Gov. Tina Kotek earlier this month, reflects the most stringent update to a corporate practice of medicine, or CPOM, doctrine in the U.S. in recent memory. …
Timothy Murphy, an attorney at Epstein Becker Green, expects Oregon's new rules to be the "high watermark" for potential CPOM updates across in the U.S., especially if the state sees less corporate investment in its healthcare infrastructure in the coming years as a result of its new law.
"For better or for worse, that's the choice that they've made," Murphy said. "I think that national players will look long and hard at whether it makes sense to have the cost of Oregon for the size of the market."
"Oregon kind of sits in a middle ground. If California was to introduce this, that calculus of the revenue and the market share is different in California, different in Texas, different in New York than it's in Oregon," he said. "It's also different in Rhode Island and Delaware on the other side of it."
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