Oregon Court Victory Upholds Oversight of Healthcare Mergers
Appeals court affirms state’s right to regulate hospital deals, ensuring fair competition.
In a significant win for Oregon, a federal court has validated the state’s authority to scrutinize major healthcare transactions, potentially reshaping the landscape of hospital mergers and acquisitions.
Key Ruling on Healthcare Oversight
The 9th U.S. Circuit Court of Appeals, on Thursday, supported a previous court decision, confirming that Oregon’s law enabling the Oregon Health Authority to evaluate—and even block—hospital mergers and other large healthcare deals is constitutional. The court rejected arguments that the law was too vague.
This ruling arrives as hospital consolidation activity is increasing nationwide. In 2023, there were 65 hospital mergers, up from 53 in 2022, according to Kaufman Law Firm, (Kaufman Law Firm).
Implications for Oregon’s Healthcare System
The legal challenge was brought by the state’s hospital lobby group, whose identity was not reported in the original article.
With this legal victory, Oregon can continue its efforts to ensure healthcare business deals do not adversely affect competition, access, and affordability for patients across the state.
