Oregon Association of Hospitals and Health Systems v. State of Oregon and Oregon Health AuthorityDate Filed: October 3, 2022
District Court: Oregon U.S. District Court, Portland Division – 3:22-cv-01486
Nature of Suit: Challenge of Regulatory Mandate - Merger Review Law
Defendant Type: State
Plaintiff Type: Private
Oregon Association of Hospitals and Health Systems, the trade group for hospitals in Oregon, filed a suit in district court on October 3, 2022 against the state. The group seeks to overturn House Bill 2362, which passed in 2021 and requires health care entities to provide notice and obtain approval from the Oregon Health Authority before moving forward with any mergers, acquisitions, or affiliations of entities that had $25 million or more in net patient revenue in three fiscal years preceding the transaction, if the transaction will result in one entity experiencing an increase in $1 million or more of net patient revenue. The goal of the legislation is to prevent anticompetitive consolidation in health care and maintain affordability of care. Plaintiffs argue that the law imposes unnecessary delays that impede access to care, that it lacks sufficient standards by which to evaluate transactions, and that it improperly expands the power of the Oregon Health Authority.
The state moved for summary judgement on May 26, 2023.