ApolloMD, the Georgia-based company recently hired by PeaceHealth to staff its Lane County hospital emergency departments, has responded to a request for information from Oregon lawmakers. But, according to the Oregon House Majority Leader, the company’s responses have raised more questions than answers.
Rep. Ben Bowman, D-Tigard, was lead author of Senate Bill 951, a 2025 law designed to prevent the corporate practice of medicine in Oregon.
On Feb. 4, PeaceHealth announced its intention to end a 35-year emergency medicine contract with locally-owned Eugene Emergency Physicians and install ApolloMD, a healthcare staffing company that Bowman had never heard of.
In late February, Bowman, along with Eugene Democratic Reps. Lisa Fragala and Nancy Nathanson, co-authored a letter to ApolloMD, in which they cited concerns about the potential impact of experienced emergency physicians being displaced and asked the company to provide proof of compliance with state laws.
ApolloMD responds
The company defended itself in a five-page letter signed by ApolloMD CEO Dr. Yogin Patel.
The letter, dated March 6, states PeaceHealth selected ApolloMD to “support the establishment of a physician-owned practice entity, Lane Emergency Physicians, LLC (“Lane”), and to provide non-clinical administrative services to “Lane” pursuant to an administrative services agreement.”
It said Lane Emergency Physicians LLC will provide emergency department physician services at Sacred Heart Medical Center at RiverBend, Peace Harbor Medical Center, and Cottage Grove Community Medical Center.
“All clinical judgment, patient care decisions, medical direction, and professional responsibilities will remain exclusively with 'Lane’s' licensed Oregon physician owner and its clinicians, in full compliance with Oregon law, including Senate Bill 951,” the letter said. “We are finalizing the formal governance and operational agreements and anticipate completion well before the June 1st and July 1st, 2026, service commencement dates.”
The ApolloMD letter also responded to seven specific requests for information.
But Bowman said he and fellow lawmakers still have many questions. For one, he said the MSA, or Management Services Agreement, is incomplete.
“I need to see more information about what the relationship is between doctor and ApolloMD, the MSO, to really understand whether there's a violation or not,” Bowman said.
And, he said, the ownership structure remains unclear. In their letter, ApolloMD said Dr. Johne Philip Chapman will be the “sole owner and member” of the newly formed Lane Emergency Physicians LLC.
“What it looks like from their response is that they are using what is often referred to as the ‘friendly physician model,’ where you bring in a ‘straw doctor’ to lead the practice to be in compliance on paper with the requirement that doctors run the clinic,” Bowman said.
To the question of whether any physician owner, manager, officer, or director of Lane Emergency Physicians, LLC receives compensation from any MSO owned by or affiliated with ApolloMD, the company responded.
“Dr. Chapman receives no compensation or other remuneration from ABS or any ApolloMD affiliate, or any MSO owned or affiliated with ApolloMD,” the letter said.
'Concerning red flag'
Bowman said ApolloMD has acknowledged Chapman lives in Chicago and is not presently licensed to practice medicine in Oregon.
“That's a concerning red flag when what I think most people in Eugene want is locally controlled and managed health care providers,” he said.
Bowman insisted the core question that needs to be answered is where authority lies.
“We created a bright line in Senate Bill 951 that says this corporate management service organization cannot have any authority over the doctor who owns the clinic. That is the mechanism that most of these private equity firms and large corporations use to get around our laws,” Bowman said. “They install a doctor who essentially works for the corporation while they own the clinic. Our bill says you cannot do that anymore.”
“So, the question that we need to understand now is 'what is the relationship between that doctor/owner and the MSO (Management Services Organization) that is non-physician, the ApolloMD group?' And there’s not a clear answer to that question in the documents they provided.”
An undated article on an ApolloMD blog post describes Dr. Chapman’s medical career from healthcare IT to M.D., as well as recognition he received from the company as "ApolloMD’s Medical Director of the Year." The article makes clear that Chapman has professional affiliations with the company.
“At ApolloMD, he (Chapman) has found a place where his values align with his vocation, and where his passion for medicine continues to inspire those around him,” the article concludes.
Seeking transparency
Bowman said he now really wants to know more about ApolloMD and the PeaceHealth transaction.
“I think the people of Eugene deserve transparency from those who want to provide medicine to the community and right now there's not sufficient transparency,” he said.
Reviewing ApolloMD’s responses, Bowman said he is working closely with Nathanson and Fragala to ascertain ApolloMD’s compliance with Oregon laws.
“They are two of the leading voices in the state on this issue,” he said. “Obviously, Eugene has been heavily impacted by outside corporate actors coming into the health ecosystem and causing massive disruptions. So, in some ways it is good that it's in Eugene because you've got these champions who are on it from the very beginning.”
Bowman said lawmakers are currently considering next steps.
In their letter, ApolloMD sought to make clear it is not affiliated with private equity.
"Over the past several weeks, including during (the March 5) Senate hearing, there have been repeated references to ApolloMD’s alleged affiliation with private equity. We take this opportunity to state unequivocally that we are a privately held company that is not, and has never been, under private equity ownership or control."
The ApolloMD letter concluded with a stated willingness to meet with lawmakers virtually or in person to review redacted materials and address any further questions.
