A federal appellate court has upheld an Oregon law that gives the Oregon Health Authority the ability to review and block hospital mergers and other major healthcare transactions, The Oregonian reported July 7.
Four things to know:
1. The Health Care Market Oversight Program was created by state legislators in 2021, according to the report. Through the program, the Oregon Health Authority reviews proposed transactions to ensure they support “Oregon’s goals of health equity, lower costs, increased access, and better care.”
2. The Hospital Association of Oregon sued to block the law in 2022, according to the report. The group argued that the law and rules were unconstitutionally vague and gave state officials too much unchecked authority.
3. A U.S. district judge dismissed the lawsuit in 2024, ruling that the hospital association had failed to show the law was unconstitutionally vague. The group appealed the ruling, arguing that the law’s terms for “essential services” and “health equity” were not clearly defined and gave too much discretion to regulators. It also argued that the scope of the law could lead to inconsistent or arbitrary enforcement.
4. A federal appellate court panel ruled July 3 that the law’s rules and guidance documents provide sufficient clarity to prevent abuse or confusion, according to the report. The three-judge panel also found that the state created a “comprehensive and transparent” process that includes public input, an option for early review and the ability to appeal decisions.
