In 2021, the Oregon Legislature passed HB 2362 to establish the Health Care Market Oversight Program. This program granted significant authority to the Oregon Health Authority to oversee transactions involving health care entities, with the aim of promoting transparency, supporting statewide priorities, and monitoring impacts. However, concerns were raised by the Hospital Association of Oregon (HAO), which argued that the law was negatively affecting health equity and access to care.
President and CEO Becky Hultberg expressed her disappointment with the law’s failure to achieve its intended goals. She criticized it for giving too much power to an agency that has implemented costly and burdensome processes that are unpredictable and arbitrary. The HAO challenged the law on two grounds: citing vague language that violates the U.S. Constitution’s Due Process Clause and alleging that it delegates legislative power to the Oregon Health Authority, violating the state constitution.
A U.S. District Court judge in Salem, Oregon ruled that there is no violation of due process under either federal or state law in relation to this program. The HAO noted that while they were pleased with this decision regarding federal constitutional claims, they were disappointed that the court did not address their state constitutional claim regarding delegation of legislative power.
Hultberg expressed concern about how this ruling may negatively impact vulnerable populations in Oregon by hindering beneficial health care arrangements while allowing harmful ones to proceed, potentially affecting access to health care services for these populations. As a result, the HAO is considering appealing this decision to
