New Report: High Costs, Low Pay From Insurers, And Onerous Regulation Push Oregon Hospitals To The Brink -05/01/25

A new Hospital Association of Oregon report shows that hospitals are financially unstable, threatening the future of patient care in Oregon communities. Almost half of the state’s hospitals operated at a loss in 2024, and others barely broke even.

 

“Oregon’s hospitals are on the brink,” said Becky Hultberg, Hospital Association of Oregon president and CEO. “They face a perfect storm of soaring expenses, complex and costly regulations, and payments that don’t cover the cost of care. And federal Medicaid changes contemplated by Congress could tip some hospitals over the edge.”

 

The report highlights that while hospitals across the country were challenged during the pandemic and are now stabilizing, Oregon hospitals remain on unstable footing.

 

“It’s becoming clear that Oregon hospitals operate in one of the most challenging environments in the country, shaped by a tough regulatory landscape and payments that don’t come close to covering the double-digit increases we’ve seen in expenses from salaries and benefits,” she said. “Patients are struggling to find doctors, wait times to see a doctor are long, and emergency departments are overcrowded. This is a result of the policy choices the state has made and insufficient payment from insurers.”

 

In this challenging environment, Oregon hospitals have been pushed to make difficult decisions including cutting more than 800 jobs, seeking partnerships to shore up operations, reducing or divesting from services, and fundraising to replace broken or outdated equipment. This is a trend that is likely to continue without shifts in health policy and increasing payments to hospitals to cover the cost of providing care.

 

Medicaid—the state’s largest insurer—is contributing to hospitals’ financial distress. The state only pays hospitals 56 cents on the dollar for caring for Medicaid patients. Additionally, hospitals are subject to onerous state rules and regulations that demand resources for compliance, reduce revenue, and increase operating expenses for hospitals.

 

Hospitals’ financial instability not only jeopardizes access to care but also threatens the economic stability of communities statewide. Oregon’s 61 hospitals serve as a crucial economic engine, generating $32.4 billion in economic impact and supporting 160,000 jobs—including 70,000 direct hospital employees.

 

“In this pivotal moment for hospitals, policymakers and community leaders cannot afford to ignore what’s happening in Oregon,” Hultberg said. “The choices the state makes are forcing the trade-off of services that our families, friends, and neighbors depend on.”

 

Read more about the state of Oregon’s hospitals in the Hospital Association of Oregon’s new report: Oregon Hospitals on the Brink.

 

Media availability:

• Hospital Association of Oregon President and CEO Becky Hultberg will be available to speak to the media between 1-2:30 p.m. on Thursday, May 1
• PNGs of graphics from the report are also available upon request

About the Hospital Association of Oregon

Founded in 1934, the Hospital Association of Oregon Association (HAO) is a mission-driven, nonprofit trade association representing Oregon’s 61 hospitals. Together, hospitals are the sixth largest private employer statewide, employing 70,000 employees. Committed to fostering a stronger, safer, more equitable Oregon where all people have access to the high-quality care they need, the hospital association supports Oregon’s hospitals so they can support their communities; educates government officials and the public on the state’s health landscape and works collaboratively with policymakers, community based organizations and the health care community to build consensus on and advance health care policy benefiting the state’s four million residents.