STAT+: Oregon hospitals won’t outsource to national physician chain after all

STAT PlusBusiness Oregon hospitals won’t outsource to national physician chain after all PeachHealth’s effort to move emergency staffing to ApolloMD became rallying cry against corporate health Manage alerts for this article Email this article Share this article By Tara BannowMay 6, 2026 Hospitals and Insurance Reporter Tara Bannow[email protected]Tara Bannow covers hospitals, providers, and insurers. You can reach Tara on Signal at tarabannow.70. After a tidal wave of blowback that culminated in a lawsuit, a nonprofit health system has reversed course in its plan to replace its Oregon emergency physicians with a national chain.

PeaceHealth’s announcement Wednesday didn’t disclose what prompted its change of heart, but those familiar with the situation say it’s because the health system’s plan was poised for defeat in a legal challenge. When PeaceHealth said in February it was cutting ties with Eugene Emergency Physicians, the local group that had staffed its Oregon hospitals for 35 years, the news drew tremendous pushback from doctors, nurses, lawmakers, mayors, and emergency medicine groups. Advertisement Then, on March 20, the Eugene emergency physicians sued, arguing that PeaceHealth’s plan to use the Atlanta-based staffing chain ApolloMD violated a new Oregon law prohibiting managed service organizations from directly owning medical practices or interfering with clinical decisions.

The case has had four hearings, in which the judge was “quite clear” that the scheme violated the law, Senate Bill 951, said Hayden Rooke-Ley, an attorney who represented the doctors and a senior fellow for health care with the American Economic Liberties Project. STAT+ Exclusive Story Already have an account? Log in This article is exclusive to STAT+ subscribers Unlock this article — plus daily market-moving biopharma analysis — by subscribing to STAT+.

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