The Senate Committee on Finance and Revenue convened on May 28, 2025, to discuss pressing issues within Oregon's healthcare system, particularly focusing on the financial challenges faced by private clinics.

The meeting began with a discussion on the ongoing trend of consolidation in the healthcare sector, where a significant number of physicians are now employed by hospitals or corporate entities. As of February 2024, approximately 78% of physicians fall into this category. This shift has raised concerns about the viability of private clinics, which are increasingly feeling the financial strain from various directions.

A key point raised during the meeting was the impact of the corporate activity tax (CAT) on private clinics. Unlike hospitals and long-term care facilities, which are exempt from this tax, private clinics are subject to it. Doctor Meech highlighted that the CAT effectively acts as a form of triple taxation for clinics. He explained that public payer receipts, which are already insufficient to cover the cost of care, are taxed, adding to the financial burden on these healthcare providers. Additionally, the taxation extends to the full amount of medications, as noted by Doctor Schiller, further complicating the financial landscape for private clinics.

The committee's discussions underscored the urgent need to address these disparities in taxation and support for private clinics, which play a crucial role in the healthcare system. The meeting concluded with a call for further examination of the CAT's implications and potential reforms to alleviate the financial pressures on these essential healthcare providers.