Salem, Oregon – Dave Nichols’ life took a drastic turn during a rock-climbing excursion in October 2017, resulting in a severe brain injury that required extensive inpatient care. However, when Nichols’ parents attempted to bring him back home to Oregon, they faced a significant obstacle – a lack of available hospital beds in the state.
In search of treatment options, Nichols’ parents had to look beyond Oregon’s borders and eventually found an opening in Colorado, over 1,000 miles away. This experience prompted Oregon State lawmaker Lucetta Elmer to delve into the complexities of the state’s healthcare policies, despite her usual focus on other legislative matters.
Elmer’s research revealed the use of regulatory tools like certificates of need (CON) in Oregon, which often hinder healthcare investment and expansion. Oregon’s rigorous CON application process, comprising 43 requirements and four levels of review, has deterred many potential investors due to its complexity and time-consuming nature.
Despite the nationwide shortage of healthcare beds, Oregon’s stringent CON laws have led to challenges for investors like Post Acute Medical and Encompass Health, who faced opposition from existing providers when seeking CONs for new facilities in the state. As a result, some investors, like Post Acute Medical, have been forced to relocate their investments elsewhere due to regulatory barriers.
With Oregon ranking low nationally in terms of rehabilitation beds per capita and facing shortages in mental health and addiction recovery resources, the need for reforming CON laws has become increasingly urgent. Policymakers and advocates argue that loosening CON regulations could facilitate greater investment in essential healthcare services and address critical bed shortages.
The potential consequences of maintaining strict CON laws, as highlighted by experiences in other states, could jeopardize patient access to crucial services for mental health, addiction treatment, and rehabilitation, exemplified by cases like Nichols’ need to seek care out-of-state. Elmer’s proposed bill to repeal CON requirements for psychiatric, chemical dependency, and rehabilitation services aims to address these pressing healthcare challenges in Oregon, fostering a more supportive environment for investors and improving access to vital healthcare services for the state’s residents.