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Oregon bill would increase scrutiny of hospital mergers, acquisitions

Oregon lawmakers recently passed a bill that would increase oversight of hospital mergers and acquisitions in the state. 

Under House Bill 2362, the Oregon Health Authority would need to approve any merger, acquisition or affiliation that would increase a healthcare organization's net patient revenue by $1 million or more. It also requires that healthcare entities with $25 million or more in net patient revenue in the three preceding fiscal years obtain approval for mergers, acquisitions or affiliations. 

The bill aims to protect competition and preserve care in underserved areas. 

According to the bill, regulators will deny an M&A deal if the organizations cannot prove that the transaction will reduce patient costs, boost access to services in medically underserved areas or improve health outcomes.

The bill awaits the signature of the Oregon House speaker.

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