Governor Kotek’s Budget Addresses Funding Needs for Oregon Hospitals

Salem, Oregon- The Hospital Association of Oregon has expressed support for Governor Tina Kotek’s proposed 2025 budget, which includes increased funding for the Oregon Health Plan (OHP). The measures aim to sustain healthcare services statewide, including maternity care and other vital community health services.

“Adequate funding of the Oregon Health Plan is not just about access to care for vulnerable Oregonians, but about the availability of services for us all,” said Becky Hultberg, president and CEO of the Hospital Association of Oregon.

Community hospitals in Oregon have faced financial challenges for the past five years, with approximately half reporting consistent losses. Many hospitals have struggled to remain solvent, citing reimbursement rates from OHP as a significant factor. Currently, OHP pays hospitals only 70 cents for every dollar of care provided to its members.

The state’s largest insurance provider, OHP has seen enrollment grow from 1.1 million in 2020 to over 1.4 million today, now covering one in three Oregonians, including 56% of children in the state.

“As enrollment in OHP continues to grow, it is becoming more urgent for the state to commit to covering the cost of this program,” Hultberg said. She added that Governor Kotek’s recommended budget represents progress toward addressing these funding gaps.

Without further financial support, hospitals may be forced to reduce services, potentially impacting access to care for insured and uninsured residents alike.

“Unfortunately, we’re reaching a point in our state where having health insurance doesn’t mean you have access to care,” Hultberg warned.