After a firestorm that led to a lawsuit, the nonprofit health system reversed plans to replace Oregon’s emergency physicians with nationwide emergency physicians.
PeaceHealth’s Wednesday announcement did not specify what prompted the policy change, but people familiar with the situation said it was because the health system’s plan was poised to lose a legal challenge. When PeaceHealth announced in February that it was severing ties with Eugene Emergency Physicians, a local organization that has staffed Oregon hospitals for 35 years, the news prompted significant backlash from doctors, nurses, legislators, mayors, and emergency medical organizations.
And on March 20, Eugene emergency physicians filed a lawsuit alleging that PeaceHealth’s plan to use Atlanta-based staffing chain ApolloMD violates a new Oregon law that prohibits managed services organizations from directly owning medical practices or interfering with clinical decisions. The case went through four hearings, during which the judges were “absolutely clear” that the plan violated the law (Senate Bill 951), said Hayden Luke-Lee, a lawyer representing the doctors and senior health care fellow at the American Economic Freedom Project.
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