Relating to certificates of need for hospice programs; declaring an emergency.
SB 1162 requires an individual or entity to obtain a certificate of need from the Oregon Health Authority before establishing a new hospice program, or before expanding or relocating an existing hospice program into a new service area. The bill defines a hospice service area as a geographic area within a 60-mile radius of the program’s physical location, and it exempts projects limited to repairing or renovating existing facilities.
To obtain approval, applicants must submit a project description, evidence of community need, financial projections and sustainability plans, and an analysis of the impact on existing hospice providers. The Oregon Health Authority must evaluate applications based on community need, access for underserved populations, cost-effectiveness, financial viability, and compliance with state and federal standards. The bill also requires a public hearing, provides for contested case review, makes certificates nontransferable, and authorizes the agency to adopt implementing rules.
The bill amends Oregon’s hospice licensing statutes, ORS 443.864 and 443.869, to make operation without a valid hospice certificate of need subject to license suspension, revocation, nonrenewal, and civil penalties of up to $50,000. It creates a new regulatory approval process for hospice market entry and expansion, giving the Oregon Health Authority authority to review, approve, condition, or deny proposed hospice projects and to collect fees limited to administrative costs. The measure takes effect immediately on passage, but the new certificate-of-need requirements and related enforcement provisions become operative on January 1, 2027.
The available committee vote suggests cautious support: the Senate committee advanced the bill 3-2 with amendments and a referral to Ways and Means. The bill’s findings frame it as a public-health and consumer-protection measure intended to improve the quality, sustainability, and equitable distribution of hospice services and to reduce fraud. No transcript excerpts are available, but the vote pattern indicates the measure was not unanimous and likely drew some concern even among committee members.
The main point of contention is the use of a certificate-of-need requirement for hospice programs, which can be viewed as a way to control quality and prevent overexpansion, but also as a barrier to new entrants and competition. Supporters appear focused on community need, financial stability, ethical end-of-life care, and protecting underserved populations. Opponents or skeptics likely object to added regulatory burden, delayed market entry, and the potential for existing providers to influence whether new competitors can enter or expand in a service area. The 3-2 committee vote indicates these concerns were significant enough to prevent unanimous approval.