Future Patient Care in Oregon is Under Threat as Hospitals Buckle Under Financial Strain
The future of patient care at hospitals in Oregon communities is under threat as costs continue to soar, regulations become increasingly onerous, and payment from insurers fail to meet expenses.
State Hospitals on the Brink of a Financial Crisis
This is revealed in a new report by the Hospital Association of Oregon (HAO) that says state hospitals are on the brink of financial crisis, with almost 50% of them operating at a loss in 2024, while the remainder barely broke even.
Adding to the dilemma are federal Medicaid changes that could ‘tip some hospitals over the edge,’ warns the HAO CEO and president, Becky Hultberg.
State Health Policies and Poor Insurance Payments Creating a Chain Reaction of Deteriorating Services
Hultberg says policy choices made by the state coupled with insufficient financial cover from insurers have led to a chain reaction of deteriorating patient care. Patients struggle to find doctors, wait times for appointments are prolonged, and hospital emergency departments are overcrowded.
Hospitals Forced to Cut More Than 800 Jobs
The CEO says hospitals have had to make the difficult decision to cut more than 800 jobs, have been forced to seek partners to help reinforce operations, have reduced or divested certain services, and have been reduced to fundraising efforts to replace outdated or broken equipment.
Hultberg says this trend will continue unless changes are made to health policies and insurers increase payments to hospitals to cover the cost of patient care.
Medicaid is Oregon’s biggest health insurer but only pays 56 cents on the dollar for patient care. Added to financial constraints are the resources required to meet the state’s onerous laws and regulations. This reduces hospital revenue and increases expenses.
The report clearly illustrates that financial instability is undermining the foundations of health care and threatening the economic stability of Oregon communities.
Oregon Hospitals Generate $32.4 Billion and Support 160,000 Jobs
The 61 hospitals in the state generate $32.4 billion annually and support 160,000 jobs which include 70,000 people working directly at health care facilities.
Hultberg describes the current situation as a ‘pivotal moment for hospital, policymakers and community leaders…the choices the state makes are forcing the trade-off of services that families, friends, and neighbors depend on.’
According to the HAO, the data in the report serves as a foundation for informed decision-making and is a call to action to stabilize a system under strain.