A healthcare staffing company hired to provide emergency department physicians for several hospitals in Lane County, Oregon has responded to questions from state lawmakers, but officials say the reply has left key issues unresolved.
The Georgia-based company ApolloMD recently provided a written response to concerns raised after it was selected by PeaceHealth to help staff emergency departments at multiple hospitals in the region.
Contract change sparks controversy
In early February, PeaceHealth announced plans to end a 35-year agreement with the locally owned group Eugene Emergency Physicians and instead work with ApolloMD.
The decision prompted criticism from physicians, community members and several lawmakers, who questioned how the change might affect experienced emergency doctors in the area.
Among those seeking clarification was Ben Bowman, an Oregon state representative from Tigard, Oregon. Bowman authored Senate Bill 951, a 2025 law intended to limit the corporate control of medical practices in the state.
Bowman and fellow Democratic lawmakers Lisa Fragala and Nancy Nathanson sent a letter to ApolloMD requesting details about how the company would comply with state regulations.
Company outlines plan for physician-owned group
ApolloMD replied in a five-page letter signed by its chief executive, Yogin Patel.
The letter states that PeaceHealth selected the company to help establish a physician-owned practice called Lane Emergency Physicians LLC. According to ApolloMD, the group will provide emergency physician services at several hospitals, including:
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Sacred Heart Medical Center at RiverBend
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Peace Harbor Medical Center
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Cottage Grove Community Medical Center
ApolloMD said it would supply administrative and non-clinical services, while medical decisions and patient care would remain under the authority of licensed Oregon physicians.
The company added that final governance and operational agreements are expected to be completed before the new service contracts begin in June and July 2026.
Lawmakers say key details remain unclear
Despite the response, Bowman said the documents left major questions unanswered.
He noted that the management services agreement, which outlines the relationship between the physician-owned practice and ApolloMD, appears incomplete.
Bowman also expressed concern about the ownership structure. According to ApolloMD’s response, Johne Philip Chapman will serve as the sole owner of Lane Emergency Physicians LLC.
Bowman said arrangements like this can sometimes resemble the so-called “friendly physician model,” where a doctor technically owns the practice while a corporation controls operations behind the scenes.
Questions about physician ownership
Lawmakers also raised concerns that Chapman currently lives in Chicago, Illinois and is not licensed to practice medicine in Oregon.
Bowman said many residents in Eugene, Oregon want healthcare systems to remain locally managed and transparent.
The central issue, he said, is determining whether ApolloMD has authority over the physician-owned clinic, which could potentially conflict with Senate Bill 951’s restrictions on corporate involvement in medical practices.
Company denies private equity ties
In its response, ApolloMD emphasized that it is privately held and not owned or controlled by private equity firms.
The company also expressed willingness to meet with lawmakers to review additional information and discuss the concerns raised in their inquiry.
State legislators are now reviewing the response and considering possible next steps as they evaluate whether the arrangement complies with Oregon law.
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