Oregon Allows 11 Rural Hospitals to Pool Resources to Help Them Stay Afloat
Eleven independent Oregon rural hospitals have obtained state approval to form a network intended to strengthen their finances, coordinate patient care, and expand access to medical services, while still letting them operate independently.
Oregon Approves a Network Allowing Rural Hospitals to Share Resources While Staying Independent
The Oregon Health Authority approved the Cascades Rural High Value Network on Friday, a partnership that brings together 11 hospitals, primarily serving rural communities in southern and eastern Oregon.
The approval comes as smaller health care providers are increasingly facing financial and operational pressures.
The networked hospitals will not become one single health care provider but will pool resources, share infrastructure, and coordinate care. Under the approval order, each hospital must remain independently owned, governed, and operated for at least five years.
And the hospitals may also not share competitively sensitive information- including pricing. Special safeguards must be established to protect that information.
The hospitals will retain their existing leadership structures and continue serving their current geographic areas. The network will work with Cibolo Health- a management services company- that will oversee its operations and help coordinate shared services.
How the Partnership Could Strengthen Hospital Finances and Expand Local Care
According to the Oregon Health Authority’s approval order, the network is intended to improve financial sustainability and help hospitals offer services they might otherwise struggle to maintain or expand.
By sharing infrastructure and expertise, the hospitals expect to improve access to telemedicine, remote patient monitoring, and chronic disease management.
Another objective is to negotiate value-based payment agreements with health insurers linking payments more closely to care quality and patient outcomes, rather than just the volume of services provided. The hospitals plan to make their participation agreements effective from January 1, 2027.
The state approval does not guarantee that any hospital will avoid future financial difficulties or service cuts. After the transaction closes, the network also plans to apply for funding through Oregon’s Rural Health Transformation Project, a federal initiative supporting rural health care.