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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 140
Sponsored by Senator PATTERSON, Representatives DIEHL, JAVADI, NOSSE (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 tells OHA and CCOs to raise the rates at which hospitals are reimbursed for
certain psychiatric services.The Act tells OHA to take steps to help coordinate care for civilly
committed patients. (Flesch Readability Score: 62.6).
Requires the Oregon Health Authority and coordinated care organizations to increase re-
imbursement rates for inpatient psychiatric services provided by hospitals to medical assistance re-
cipients. Directs the authority, in partnership with acute care facilities, coordinated care
organizations and community mental health programs, to develop care plans for civilly committed
patients who are discharging from an acute care facility.
A BILL FOR AN ACT
Relating to behavioral health services.
Be It Enacted by the People of the State of Oregon:
SECTION 1. (1) As used in this section, “coordinated care organization” and “medical
assistance” have the meanings given those terms in ORS 414.025.
(2)(a) For inpatient psychiatric services provided by hospitals to medical assistance re-
cipients who are committed to the Oregon Health Authority under ORS 426.130, the authority
shall establish fee-for-service reimbursement rates that are no less than the budgeted, per
diem rates for inpatient psychiatric rehabilitation provided by the Oregon State Hospital.
(b) The authority shall adjust the rates established under this subsection to correspond
with any increases in the rates paid for individuals receiving inpatient psychiatric rehabili-
tation at the Oregon State Hospital.
(3)(a) For inpatient psychiatric services provided by hospitals to medical assistance re-
cipients who are not committed to the authority under ORS 426.130, the authority shall es-
tablish actuarially determined reimbursement rates, including an additional payment rate for
services that are provided to an individual for more than 30 days when a hospital is unable
to discharge the individual due to a lack of bed capacity at the Oregon State Hospital, a se-
cure residential treatment home or facility as described in ORS 443.465, a residential treat-
ment facility or residential treatment home as defined in ORS 443.400, an adult foster home
as defined in ORS 443.705 or other community-based placement.
(b) The authority may reimburse a hospital at an additional payment rate that is lower
than the rate established under this subsection only if the authority has engaged with the
hospital and determined that the hospital has voluntarily chosen not to discharge the pa-
tient.
(c) Every two years, the authority shall conduct an actuarial review of the reimburse-
ment rates established under this subsection to ensure that the rates are sufficient to cover
the costs to provide care.
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 1773 SB140
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(4) A coordinated care organization shall reimburse hospitals for providing inpatient
psychiatric services at the rates established in subsections (2) and (3) of this section.
SECTION 2. (1) As used in this section, “coordinated care organization” has the meaning
given that term in ORS 414.025.
(2) The Oregon Health Authority shall:
(a) Maintain an inventory of the population of individuals in this state who are committed
to the authority under ORS 426.130.
(b) Prescribe transparent criteria for placing individuals at, and determining priority
among individuals on the wait lists for, the Oregon State Hospital or a secure residential
treatment home or facility as described in ORS 443.465.
(c) Require the Oregon State Hospital and any residential treatment facility or residential
treatment home as defined in ORS 443.400 or adult foster home as defined in ORS 443.705
that serves individuals with mental illness to adopt electronic medical records and eliminate
paper processes.
(d) Establish criteria for a universal interview process to be used when placing an indi-
vidual who is discharging from an acute care setting to a community-based care setting, in-
cluding a requirement that all facilities accept the results of the universal interview and do
not conduct a separate interview of the individual.
(3) The authority, in collaboration with community mental health programs, shall develop
a comprehensive plan to meet the individualized needs of patients who are committed to the
authority under ORS 426.130 and receiving care from a hospital, including a plan to:
(a) Clearly delineate accountability for the patient and a timeline for expected action;
(b) Require that trial visits, as described in ORS 426.273, are completed;
(c) Begin discharge planning when the patient is admitted and share care plans with
counties and hospitals;
(d) Create an escalation process within the authority if a patient is in the hospital for
30 or more days;
(e) Coordinate the patient’s care across the behavioral health system;
(f) Establish an intensive wraparound services team to help stabilize the patient and es-
tablish wraparound services for patients who are transferred to settings other than the
Oregon State Hospital;
(g) Increase the availability of an ombudsman for patients; and
(h) Assign a case manager, from a coordinated care organization if the patient is enrolled
in a coordinated care organization or from a community mental health program if the pa-
tient is not enrolled in a coordinated care organization, to coordinate placement for the pa-
tient in the community upon discharge.
(4)(a) When a patient committed to the authority under ORS 426.130 is ready to be dis-
charged from a hospital, the authority shall develop a care plan in partnership with the
hospitaland:
(A) The patient’s coordinated care organization, if the patient is enrolled in a coordinated
care organization; or
(B) A community mental health program, if the patient is not enrolled in a coordinated
care organization.
(b) The care plan developed under this subsection shall assign the coordinated care or-
ganization or community mental health program, as applicable, to be responsible for:
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(A) The patient’s care coordination and transitions between acute care and community-
based settings, with consideration given to the patient’s acuity and level of care;
(B) Coordinating and reimbursing secure transport for the patient between facilities; and
(C) Ensuring that the discharge planning requirements for the patient are met.
SECTION 3. Section 1 of this 2025 Act applies to contracts between a coordinated care
organization and the Oregon Health Authority entered into, amended or renewed on or after
the effective date of this 2025 Act.
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