PeaceHealth puts Oregon region chief on leave after doctors allege improper role in patient care

By KRISTINE DE LEON/The Oregonian/OregonLive

PeaceHealth has placed its top Oregon hospital executive, Dr. Jim McGovern, on administrative leave after doctors accused him of directing patient care without a license and putting patients at risk.

McGovern has a medical administrative license, which allows him to oversee hospital operations but not direct or make decisions about individual patient care, officials said.

Doctors and nurses at PeaceHealth’s Sacred Heart Medical Center at RiverBend in Springfield claim McGovern has intervened in clinical decisions, pushed doctors to discharge or limit care and brushed aside concerns about unsafe conditions in the emergency department. 

Dr. William Emerson, the hospital’s chief of staff, outlined the allegations in an email he sent to employees Thursday following an Medical Executive Committee meeting earlier this week.

Emerson told The Oregonian/OregonLive that the 26-member committee, a group of physicians and others who help oversee patient care, first became aware of the concerns about a month ago.

As more reports came in from across departments, it became clear they pointed to “a sustained and repeated pattern of behavior, not isolated incidents,” Emerson said.

The committee formally reprimanded McGovern, contending his actions put patients at risk, and agreed to file a complaint with the Oregon Medical Board to review whether McGovern’s actions violated state licensing rules, according to Emerson’s email. Emerson is a member of the committee.

Hospital leaders confirmed McGovern’s leave and said an internal review is underway.

McGovern did not immediately respond to an email for comment. He is a trained physician but not licensed to practice medicine in Oregon, according to Emerson’s email to staff.

The allegations come as PeaceHealth’s Lane County system has faced ongoing strain since the 2023 closure of its University District hospital in Eugene, which shifted many patients to RiverBend. State data shows average emergency room wait times jumped since the move.

A 2024 survey led by the Oregon Nurses Association also reported patient frustrations post-closure, including long emergency room wait times, trouble scheduling appointments, rushed visits, crowded clinics and surprise medical bills.

Emerson said physicians who have raised concerns felt they were dismissed by leadership, while others hesitated to speak up earlier out of fear of retaliation.

“Physicians should never feel pressure in clinical decision-making or fear speaking up about safety,” he said.

Eugene-area state lawmakers also called for accountability. Rep. Nancy Nathanson, D-North Eugene, said the situation points to ongoing instability and communication breakdowns that have worried staff and patients, underscoring the need to keep medical decisions in the hands of doctors. She said the public deserves to know how this happened, how many people were affected and what safeguards will be put in place.

McGovern came to PeaceHealth in 2019 from Wisconsin-based ThedaCare and served as chief medical officer for PeaceHealth Oregon before being named interim regional chief executive and then to the permanent job in February 2024.

In a message to employees, Richard DeCarlo, PeaceHealth’s executive vice president and chief operating officer, said the Vancouver-based not-for-profit hospital chain received concerns about “the scope” of McGovern’s role and placed him on leave while it conducts a full review.

DeCarlo said Heather Wall – the vice president of patient care operations and chief nursing officer – will serve as interim chief executive for PeaceHealth’s Oregon region.

Jim Murez, spokesperson for PeaceHealth, said the company’s leaders “take all concerns seriously and, following our standard processes, have routed them through appropriate review channels to ensure a careful and thorough evaluation.”

The dispute is unfolding alongside a separate fight over who staffs emergency rooms in Lane County.

In February, PeaceHealth announced it would end its 35-year contract with Eugene Emergency Physicians and replace the local group with out-of-state contractor ApolloMD at its hospitals in Oregon. That includes PeaceHealth Sacred Heart Medical Center at RiverBend, PeaceHealth Cottage Grove Community Medical Center and PeaceHealth Peace Harbor Medical Center in Florence.

The move quickly drew sharp criticism from health care workers, community members and lawmakers, who warned that it could weaken care and reduce local control. Within weeks, PeaceHealth medical staff in Lane County overwhelmingly voted “no confidence” in McGovern and the system’s chief medical officer for Oregon.

And all 32 doctors and nine physician assistants with Eugene Emergency Physicians have signed a collective agreement refusing to work for ApolloMD.

McGovern previously told The Oregonian/OregonLive that PeaceHealth chose ApolloMD for its national scale, data tools and ability to recruit doctors, as demand at RiverBend’s emergency department surged sharply in recent years, adding pressure to an already crowded facility with long wait times and ambulance delays.

Last month, Eugene Emergency Physicians sued to block PeaceHealth’s plan to work with ApolloMD, arguing it violates Oregon’s corporate practice of medicine restrictions and would harm care in the community.

ApolloMD has said it serves as a management services organization and that it created a new Oregon entity, Lane Emergency Physicians LLC, to serve as the local physician group, which will handle clinical decisions. But doctors argue this setup mirrors the de facto corporate control lawmakers aimed to restrict in last year’s legislation, Senate Bill 951.

Murez said PeaceHealth still plans to move forward with the transition “to ensure we continue providing uninterrupted, high-quality care for the residents of Lane County.”

“PeaceHealth’s request for proposal committee was a multi-disciplinary team of leaders and collectively made the decision to change emergency department physician management partners in Lane County,” he said in a statement. “It was never a decision made by one individual.”

Lawyers representing Eugene Emergency Physicians this week filed a motion seeking a preliminary injunction to freeze the transition while the lawsuit plays out. They also asked the court to fast-track the case.

This story was originally published on April 10, 2026 by The Oregonian/OregonLive.