It's obvious that the health care system here in the United States has major problems. As is heard so often, we spend much more per capita than other comparable countries, but have poorer health.
Since I worked in this state as a health planner and policy analyst way back when (1970s and 1980s), I like to joke that I must have done a great job, since now our health care system is problem-free. Of course, the unfunny reality is that the same cost, access, and quality of care problems then are with us now.
Plus some.
Such as the corporatization of health care in Oregon, the subject of last Friday's Salem City Club program. It featured Senator Deb Patterson, Chair of the Oregon Senate Health Care Committee; Rep. Ben Bowman (D), House Majority Leader; and Hayden Rooke-Ley, J.D., Health Care law and policy expert.
Bowman, Patterson, and Rooke-Ley
The basic problem is that there's been a rapid increase in for-profit corporations buying up medical practices in Oregon. Yet everyone agrees that physicians should be in charge of providing medical care, and our state requires that physicians must have at least a 51% ownership of a practice.
So how is it that, according to a story in today's Oregonian ("Health care giant Optum faces new scrutiny in Oregon after fumbled arrival in Eugene, but it's already entrenched in Oregon"), physicians at the Oregon Medical Group are deeply unhappy with their new corporate owner?
Here's how the story starts out:
Dr. Amandajo Sanders knew changes were likely when, in 2020, health care colossus Optum purchased the Eugene medical group where she worked.
She never suspected that Optum’s reboot of the Oregon Medical Group would so completely reinvent the place. The focus, she said, became money, efficiencies and quotas. In addition to treating patients, doctors were expected to do medical coding, answer patient questions submitted on the group’s digital “My Chart” system, and perform other administrative chores once the job of support staff.
And she took a 5% pay cut.
Sanders quit seven months later, leaving the practice of medicine at age 40.
“They did not give us the support that we needed,” Sanders said. “I was taking all that work home, and it was unsustainable.”
About 30 of her colleagues left, too, over the past two years.
As first reported by The Oregonian/OregonLive in March, the exodus of Oregon Medical Group physicians has put hundreds, perhaps thousands, of patients into health care purgatory. Its new owner notified many — it hasn’t specified the number — by letter that it no longer had the capacity to treat them, and that they would have to seek care elsewhere. With no primary care doctor, people don’t have access to preventive care, they can’t get referrals to specialists, and it’s hard to even refill a prescription.
This fiasco after a corporate takeover of the Oregon Medical Group was cited by the panelists at the City Club problem. They said that 10,000 people in Eugene are without a doctor now, because of the departure of so many physicians who used to be with the practice.
What makes the situation even worse is that the departing physicians had to sign non-compete agreements that prevent them from working in the Eugene area after they left the Oregon Medical Group.
I'd never heard of such a thing. It seems horribly wrong. Health care isn't like working for a technology company where you might have proprietary information in your head. A physician's knowledge is supposed to be used to help people, not enrich a greedy corporation.
(The Federal Trade Commission has banned non-compete agreements in health care and elsewhere, but that regulation hasn't taken effect yet and will be challenged in court.)
But what about the 51% physician ownership requirement? How did Optum get away with a for-profit corporation controlling the Eugene medical practice? The answer provided by Rep. Bowman was complicated, but went something like this.
A legislative committee with health care oversight responsibilities got ahold of a piece of paper that showed the ownership structure of the Oregon Medical Group after Optum took over. The MSO (Management Services Organization) that handled administrative and management duties at the medical clinic was a wholly owned subsidiary of the Optum corporation.
A MSO is supposed to serve the needs of the physicians at a practice. But in this case the servant became the ruler, telling the physicians what they had to do. Somehow none of the physicians who previously owned the Oregon Medical Group were shown as owners on the piece of paper. Instead, I recall that a single physician constituted the 51% ownership requirement, and that person was doing the bidding of Optum.
So the corporation found a legal loophole in Oregon law that allowed Optum to take over the Oregon Medical Group. House Bill 4130 was an attempt to limit the role of corporations in health care. It was introduced in this year's short legislative session, passed in the House, then got stuck in the Senate after a great deal of corporate lobbying against it.
Bowman and Patterson said the bill will be reintroduced in 2025, with some changes to strengthen it. Hopefully it will pass this time. An Oregon Capital Chronicle story describes what HB 4130 would have done.
House Bill 4130 would prevent private equity firms from controlling medical practices and dictating patient treatment or making hiring decisions, though clinics could hire outside administrators to handle paperwork and the bill would exclude telemedicine providers, hospitals and long-term care facilities.
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