PeaceHealth drops plan to outsource Oregon ER physicians

Following significant backlash and a resulting lawsuit, a nonprofit health system has decided against replacing its emergency physicians in Oregon with a national chain. 

PeaceHealth’s statement on Wednesday did not specify the reasons for its reversal. However, sources suggest the decision was influenced by the likelihood of losing a legal battle. In February, PeaceHealth announced it would end its long-standing partnership with Eugene Emergency Physicians, a group that had provided staff to its Oregon hospitals for 35 years. This announcement was met with strong opposition from medical professionals, policymakers, and emergency medicine organizations. 

On March 20, the Eugene emergency physicians filed a lawsuit, claiming PeaceHealth’s intent to engage the Atlanta-based firm ApolloMD breached a new Oregon statute. This law prohibits managed service organizations from owning medical practices or meddling in clinical decisions. According to Hayden Rooke-Ley, the attorney for the physicians and a senior fellow at the American Economic Liberties Project, the judge made it “quite clear” during four hearings that the plan violated Senate Bill 951.