Last month, the Oregon Health Authority (OHA) reversed a rule change that would have seriously hurt hospitals in Jackson and Klamath counties, particularly Asante’s Rogue Regional Medical Center.
The rule change impacting the wage index designation in southern Oregon was very technical in nature, but the effect would have been straightforward – it would have entrenched outdated Medicaid reimbursement rates for years or even decades. Medicaid already pays Oregon hospitals far less than the actual cost of care; this change would have locked those shortfalls in place and made them even worse.
If it had taken effect, Rogue Regional alone was facing a $33 million loss over five years, with the damage growing over time.
What this would have meant for our community
For a safety-net hospital like Rogue Regional – which is the region’s only Level II Trauma Center and a provider for a disproportionate share of low-income and vulnerable patients – these types of impacts cannot be easily absorbed.
Over time, this means fewer doctors and nurses, and difficult decisions about whether costly but essential services can remain open.
Why the rule was reversed: community advocacy
The rule was reversed because the community came together and advocated for local health care. Everyone; from business and city leaders, physicians and Asante employees to concerned residents, stepped up. Through phone calls, meetings and nearly 200 letters submitted to OHA, southern Oregonians made clear what was at stake.
In the end, OHA made the right decision and reversed the rule. That outcome is worth celebrating. Thank you!
Why this happened in the first place
But we also need to understand why this happened at all.
After the rule was withdrawn, we filed a public records request to learn more about how the decision was made and how to prevent something like this from happening again. Months later, we have received only a portion of what we requested.
Here’s what we do know so far:
- The rule change was included inside a public notice with an unrelated title, increasing the likelihood it would go unnoticed.
- The rulemaking did not include representatives from two of the hospital systems most affected.
- OHA submitted the proposed change to the federal government before the public comment period even ended.
These are not small issues and point to a process that did not serve the public well.
A call for transparency and accountability
Southern Oregonians deserve transparency and accountability from both their elected officials and state agencies. When agencies fail to follow their own rules or hide the ball, it undermines public trust and weakens the systems meant to serve us.
We should expect better from our leaders. Our local hospitals, our economy and the health of our neighbors depend on decisions being made openly and responsibly.
