Report Reveals Nearly Half of Oregon Hospitals Operated at a Loss in 2024

Portland, Oregon- Nearly half of Oregon’s hospitals operated at a loss in 2024, and many others barely broke even, according to a new report released by the Hospital Association of Oregon, raising alarms about the future of patient care and the economic health of communities statewide.

“Oregon’s hospitals are on the brink,” said Becky Hultberg, president and CEO of the Hospital Association of Oregon. “They face a perfect storm of soaring expenses, complex and costly regulations, and payments that don’t cover the cost of care. And federal Medicaid changes contemplated by Congress could tip some hospitals over the edge.”

While hospitals across the country have begun to recover from pandemic-era financial strain, the report says Oregon facilities remain in a fragile position. High labor costs, increasing benefit expenses, and reimbursement rates that fail to meet operating costs are straining already tight margins.

“It’s becoming clear that Oregon hospitals operate in one of the most challenging environments in the country,” Hultberg said. “Patients are struggling to find doctors, wait times to see a doctor are long, and emergency departments are overcrowded. This is a result of the policy choices the state has made and insufficient payment from insurers.”

Among the key drivers of financial distress is Medicaid, the state’s largest insurer. Oregon pays hospitals just 56 cents for every dollar spent on Medicaid patient care, contributing to widespread financial strain. In addition, hospitals contend with what the report calls “onerous” state regulations that add to compliance costs and cut into revenue.

In response to mounting financial pressures, hospitals have taken drastic steps: cutting more than 800 jobs, reducing or eliminating certain services, entering into partnerships to stabilize operations, and fundraising to replace aging equipment. Without policy changes and improved reimbursement rates, the report warns these measures are likely to continue—and worsen.

Beyond access to care, the financial health of Oregon’s 61 hospitals carries significant economic implications. Collectively, they contribute $32.4 billion to the state economy and support 160,000 jobs, including 70,000 direct hospital employees.

“In this pivotal moment for hospitals, policymakers and community leaders cannot afford to ignore what’s happening in Oregon,” Hultberg said. “The choices the state makes are forcing the trade-off of services that our families, friends, and neighbors depend on.”

The Hospital Association is urging state and federal leaders to consider health policy reforms and increased payments that reflect the true cost of care as a critical step to stabilizing the state’s hospital system.