The Oregon Association of Hospitals and Health Systems sued the state over a law it says poses a threat to patient access, according to an Oct. 4 report from the Portland Business Journal.
Current law allows the Oregon Health Authority to review and approve healthcare mergers and acquisitions above a certain dollar threshold and was hailed as a way to preserve competition and rein in higher costs and service cuts.
According to the report, the Oregon Association of Hospitals, which represents 62 community hospitals across the state, filed the lawsuit on Oct. 3 in the U.S. district court and is asking that the law be overturned.
"This unconstitutional law hands unprecedented authority to OHA and its handpicked appointees to micromanage relationships between hospitals, clinics, and other health care entities," Oregon Association of Hospitals president and CEO Becky Hultberg told the Portland Business Journal.
The association argues the law resulted in vague new requirements that threaten to deter or delay relationships benefitting Oregon communities. Additionally, the association said the requirement comes at a time when hospitals are posting significant losses. Hospitals in the state collectively realized losses totaling $215 million in the first half of 2022.
"No other state has decided to gamble with its health care system in this way, and ultimately, patients could pay the price through reduced access to care. Local hospitals must be able to create relationships that protect access to care and lower patient costs. They know better than government how to best serve their communities," Ms. Hultberg said.