Oregon Bill Would Let Medicaid Care Groups Remove Uncooperative Board Members

Oregon lawmakers have introduced a bill that would allow coordinated care organizations to remove board members if they refuse to cooperate with healthcare transformation efforts, according to a Statesman Journal report.

The bill would allow the board of directors of a CCO to petition the Oregon Health Authority to remove a board member by a two-thirds vote if the board member refuses to deliver contracted services, puts the CCO at risk of decertification or violates other specific guidelines.

The bill is in response to a legal dispute between Salem (Ore.) Health and its local CCO, Willamette Valley Community Health, which manages and coordinates care for Medicaid patients. Salem Health filed suit against WVCH, claiming WVCH backed out of an existing contracting regarding reimbursement rates the hospital would receive for treating Medicaid patients.

Lawmakers behind the bill say the state needs a mechanism to intervene in dysfunctional CCOs. Bill co-sponsor Rep. Brian Clem (D) said the legislation is meant to rein in entities such as Salem Hospital, which he has characterized as a bad actor. Rep. Clem also said he would drop the bill if Salem Health drops its lawsuit.

Oregon's CCOs are a novel mechanism to better manage Medicaid care delivery. Rep. Clem said the recent dispute between Salem Health and its local CCO is an embarrassment on a national level. "We can't have a Salem squabble ruin this for the country," he said in the report.

Opponents say the bill would put dissenting voices in a CCO at risk and would stifle important discussions in the reform process, according to the report.

The bill moved to a joint budget committee this week after the House Rules Committee amended it. It now targets providers in the Salem area specifically, according to the report.

More Articles on CCOs in Oregon:

Salem Hospital in Oregon Sues Local Coordinated Care Organization
Oregon's Largest Medicaid Coordinated Care Organization Goes Live
CMS Approves Oregon's Medicaid Demo Program


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