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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2939
Sponsored by Representative HUDSON; Representatives GAMBA, NATHANSON, Senators PATTERSON, PHAM
K (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act makes a hospital that wants to close or cease, reduce or relocate health ser-
vices first give notice 275 days in advance. Allows the OHA to impose civil penalties. (Flesch
Readability Score: 62.8).
Prohibits a hospital from closing or ceasing, reducing or relocating health services without first
providing notice 275 days in advance. Requires the hospital to provide notice to the Oregon Health
Authority, local governments, patients, employees and the public. Allows the authority to impose
civil penalties for violations.
A BILL FOR AN ACT
Relating to the provision of health services offered by hospitals.
Be It Enacted by the People of the State of Oregon:
SECTION 1. (1) As used in this section:
(a) “Cease” means ceasing to provide a health service at a hospital or hospital campus.
(b) “Health services” means a type of health service that a hospital is licensed by the
Oregon Health Authority to provide.Types of health service include but are not limited to
medical, surgical, intensive care, maternity, neonatal, inpatient mental health and inpatient
substance use disorder services.
(c) “Reduce” means reducing the provision of health services or operations at a hospital
to the extent that patients need to relocate to receive the same health service.
(d) “Relocate” means relocating from a hospital or hospital campus to another hospital,
hospital campus or health care facility.
(2) A hospital licensed under ORS 441.025 may not close or cease, reduce or relocate the
provision of health services offered by the hospital unless the hospital provides notice in the
form and manner described in subsection (3) of this section.
(3)(a) A hospital that decides to close or cease, reduce or relocate the provision of health
services offered by the hospital shall provide notice in writing to:
(A) The Oregon Health Authority;
(B) The governing body of any city or county affected by the hospital’s decision;
(C) Patients who receive or have received health services from the hospital within a pe-
riod of at least three years prior to the date that the hospital plans to close or cease, reduce
or relocate the provision of health services;
(D) Employees of the hospital who are impacted by the hospital’s decision; and
(E) The public.
(b) Notice to the public must be provided by:
(A) Posting a notice at each public entrance of the hospital and each hospital campus
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 2316 HB2939
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building;and
(B) Providing a press release to news media local to the area affected by the hospital’s
decision and statewide news media.
(c) Notice must:
(A) Be completed at least 275 days prior to the date that a hospital plans to close or
cease, reduce or relocate the provision of health services offered by the hospital;
(B) Contain information required by the authority; and
(C) Meet any other requirements as prescribed by the authority.
(4) The authority may adopt rules to carry out the provisions of this section.
SECTION 2. (1) A hospital that fails to provide notice or provide notice in the form and
manner as required by section 1 of this 2025 Act or rules adopted by the Oregon Health Au-
thority pursuant to section 1 of this 2025 Act may be subject to a civil penalty.
(2) The authority shall adopt a schedule of civil penalties not to exceed $500 per day of
violation that are based on the severity of the violation.
(3) Civil penalties imposed under this section shall be imposed as provided in ORS 183.745.
(4) Civil penalties imposed under this section may be remitted or mitigated upon such
terms and conditions as the authority considers proper and consistent with the public health
and safety.
(5) Civil penalties incurred under this section are not allowable as costs for the purpose
of rate determination or for reimbursement by a third-party payer.
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