Policy

Eugene, Oregon – A decision by PeaceHealth to shift emergency room staffing at its Lane County hospitals has sparked concern among local physicians and drawn the attention of the American Academy of Emergency Medicine (AAEM). The hospital system has opted to replace Eugene Emergency Physicians (EEP), a locally-owned group that has provided emergency care for 35 years, with Atlanta-based ApolloMD. This transition raises questions about patient care, physician autonomy, and the financial stability of emergency medicine staffing companies.

The AAEM, representing over 8,000 emergency medicine specialists, issued a letter on February 16th expressing support for EEP and highlighting the benefits of locally-owned emergency physician groups. The letter follows similar expressions of support from the Oregon Nurses Association and community members who have relied on EEP’s services for decades. The core of the concern centers on the potential disruption to established relationships and the loss of local expertise within the emergency departments.

According to the AAEM, local physician ownership fosters a strong commitment to the community and a deep understanding of the unique factors influencing patient care in the region. “Replacement of a well-functioning EM physician group should never be taken lightly, as this can affect patient care, medical staff relationships and the hospital itself,” the AAEM letter states. “Incumbent EM physicians are knowledgeable in the local factors required to deliver the safest and most efficient care to a hospital’s patients.”

The AAEM’s letter also emphasizes the importance of involving organized medical staff in decisions regarding changes to contracted emergency medicine services. Citing the Code of Federal Regulations Conditions for Participation of Hospitals and standards set by The Joint Commission, the organization argues that medical staff input is crucial for maintaining quality of care. The Joint Commission’s standards specifically state that medical staff should have input into the selection of contracted services, according to the AAEM.

Oregon Law and ApolloMD’s Structure

Further scrutiny centers on ApolloMD’s compliance with Oregon’s corporate practice of medicine laws, specifically Senate Bill 951. This legislation prohibits physicians with significant financial stakes in management services organizations from owning medical practices. The AAEM has raised concerns about ApolloMD’s structure and has requested clarification on its compliance with SB 951. PeaceHealth responded to questions regarding ApolloMD’s compliance with a single statement: “All participants in the RFP process ensured compliance.”

The AAEM also pointed to the recent bankruptcies of several multi-state emergency department staffing companies – American Physician Partners, Envision, and NES Health – as a cautionary tale. These bankruptcies left emergency medicine physicians unpaid and without malpractice coverage, raising concerns about the financial stability of similar organizations. Given ApolloMD’s recent exit from private equity ownership, the AAEM letter states, “the question of how much debt the entity bears and its financial solvency is of utmost importance to physicians.”

Local Physicians Stand Firm

The situation has prompted a strong response from physicians within EEP. All 41 medical professionals employed through the local group – 32 doctors and 9 physician assistants – have pledged not to perform with ApolloMD for at least 90 days, with some indicating they will not return at all. This unified stance underscores their commitment to maintaining a locally-based, physician-led emergency department. Dr. Scott Williams, a partner with EEP for 22 years as of June 2026, has been a spokesperson for the group, navigating a non-disclosure agreement with PeaceHealth while advocating for their continued service.

The decision to end the 35-year contract with EEP follows a request for proposals initiated by PeaceHealth in November 2025, according to Dr. Williams. Prior to that point, he stated, PeaceHealth leadership had not identified any issues with the quality of care provided by EEP. Whereas, he acknowledged that the emergency departments, particularly at RiverBend, have been facing challenges.

The shift to ApolloMD is intended to improve patient flow and reduce wait times in the emergency department, according to PeaceHealth. However, concerns remain about the potential impact on the quality of care and the established relationships between emergency physicians, nurses, and other hospital staff.

As the transition unfolds, the focus will be on ensuring a smooth handover and maintaining the continuity of care for patients in Lane County. The situation highlights the complex interplay between hospital administration, physician groups, and the broader community in shaping the future of emergency medicine.

Disclaimer: This article provides informational content about healthcare and should not be considered medical advice. Consult with a qualified healthcare professional for any health concerns or before making any decisions related to your health or treatment.

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