Oregon Gov. Tina Kotek has urged PeaceHealth to delay and reconsider its transition away from a local emergency physician group to staff its emergency rooms in three Lane County hospitals.
The request for a six-month delay, sent to PeaceHealth Oregon’s Chief Hospital Executive Jim McGovern Wednesday, comes after PeaceHealth announced it would end its decades long relationship with Eugene Emergency Physicians in favor of ApolloMD, a Georgia based staffing company.
That company, which staffs 100 emergency departments across the country, recently created a new entity, Lane Emergency Physicians, LLC, to staff PeaceHealth’s local emergency departments.
ApolloMD is not currently operating in Oregon and it's drawn scrutiny from lawmakers and state regulators.
In her letter, Kotek said after PeaceHealth’s decision to close its University District emergency room in 2023, she was concerned about the system’s ability to transition safely.
“I am troubled by the likely consequence of PeaceHealth’s actions leading to the loss of quality physicians from the area,” Kotek wrote. “This will have a long-term effect on a region already impacted by major health care disruption and provider decline. We have seen elsewhere in the state how planned staffing changes result in serious delay and disruption despite confident assurances from administrators.”
Kotek said her office has asked for weekly updates from the Oregon Medical Board to ensure the new entity actually has enough licensed physicians to safely transition. She also urged the PeaceHealth to continue working with Eugene Emergency Physicians.
Eugene Emergency Physician group members have signed a pledge refusing to work for ApolloMD.
Kotek said her office is also monitoring the Oregon Health Authority’s work to ensure PeaceHealth and ApolloMD’s agreement follows state law requiring physicians, not private equity or administrators, make healthcare decisions.
She also asked the hospital system to release scoring, and other information is used to decide to switch from local emergency physicians to Apollo MD.
“I have requested a review of all options available to me to ensure adequate staffing of ED services in the region due to the lack of transparency and confidence in PeaceHealth’s plan to date,” Kotek wrote. “I urge PeaceHealth to reconsider the rushed nature of this significant contract change and delay actions to allow for a more thoughtful approach to sustainable staffing that meets your emergency department needs.”
Oregon lawmakers also wrote to PeaceHealth Wednesday, asking the hospital system and Apollo MD to participate in the Oregon Health Authority’s Health Care Market Oversight program. The letter was sent by Rep. Ben Bowman, D-Tigard, the author of a law aimed at blocking corporate control in healthcare.
It was also signed by five Eugene area lawmakers, House Speaker Julie Fahey, Reps. Lisa Fragala and Nancy Nathanson and Sens. James Manning and Floyd Prozanski.
"This is a request for transparency so that Oregonians can have confidence that this transaction complies with state law, particularly as Senate Bill 951 is implemented," lawmakers wrote. "To be clear, this process will result only in a determination of whether or not this transaction is a “material change” and subject to further review, not whether the arrangement is in compliance with SB 951 or other state laws."
PeaceHealth spokesperson Jim Murez shared a statement on behalf PeaceHealth saying the hospital system would provide responses to the governor and lawmakers concerns.
"We appreciate Gov. Kotek and other legislators' engagement and focus on ensuring safe, reliable emergency care for Lane County communities, and we will respond promptly and directly to the questions raised in their letters," the statement read. "We remain committed to transparency and to working collaboratively with the governor’s office, state regulators and community partners. We will continue to share information and provide updates as this transition progresses."
