Protect the health care services Oregonians rely on
Preserve critical funding for Medicaid
This is a defining moment for health care in Oregon. Hospitals are on the brink of financial failure and patients are struggling to access care.
This session, we must protect the health care services Oregonians rely on by protecting state investments in Medicaid that draw down matching federal dollars.
Protecting state dollars that secure federal funds is essential to preserving access to care throughout Oregon.
The state of Oregon health care:
FACT
One in three Oregonians are covered by Medicaid
FACT
Nearly half of Oregon hospitals are operating at a loss.
After years of new policies that have increased costs without increased funding, Oregon hospitals–faced with challenges beyond their control–are being forced to make impossible choices, like cutting services and laying off staff.
FACT
Medicaid does not cover the cost OF caring for patients in hospitals.
FACT
In Oregon, hospitals are often the largest, or among the largest, employers in their regions.
Budget cuts not only mean a loss of services, but also a loss of family wage jobs.
Oregon must protect its state investments In:
Maternity care
Maternity care in Oregon is increasingly vulnerable due to rising costs, workforce shortages, and low reimbursement rates that make it difficult for hospitals—especially in rural areas—to sustain labor and delivery services.
In 2025, the legislature approved a $25 million increase in funding for maternity services. This investment was expected to draw an additional $64.3 million in federal funds to boost hospital maternity payment rates, supporting access to maternity care across the state.1 It is critical that the legislature prioritizes and protects children and families.
Hospitals serve low-income & vulnerable oregonians need
The Disproportionate Hospital Share (DSH) program exists for hospitals that face financial strain due to treating a high number of patients who are uninsured or covered by Medicaid. The goal is to help them continue providing care to vulnerable populations. Any state cut would mean leaving federal funds on the table, reducing what is available to support health care services for those who are uninsured or covered by Medicaid.
The Legislature is considering a $34.1 million reduction in state DSH funds, resulting in the loss of another $47.2 million in federal funds—an overall $81.3 million impact.2
Training dollars for Oregon providers
Oregon faces persistent challenges in recruiting and retaining physicians due to the high cost of living, an aging workforce, and growing burnout. Cuts to Graduate Medical Education (GME) funding will deepen Oregon’s existing health care workforce shortage.
The Legislature is proposing to reduce Medicaid payments to Oregon’s 10 teaching hospitals by more than $12 million, with $8.2 million of those cuts resulting in an additional $16.9 million loss of federal funding.3 In total, more than $29 million is at risk.
Supporting recovery after a hospitalization
Every day, hospitals in Oregon face a critical challenge—hundreds of patients ready for discharge have nowhere to go due to a lack of available facilities or support services. When patients ready for discharge can’t leave, it reduces capacity, forces incoming patients to be boarded in emergency departments, and overwhelms staff.
The Legislature is proposing to delay an approved $1.9 million investment to extend the post-hospital care benefit from 20 days to 100—a change intended to benefit people recovering after a hospitalization. The cut will result in the loss of another $2.4 million in federal funding—an overall $4.3 million impact.4
1. Oregon Health Authority 2025 End of Session Legislative Report, page 14. 2. Dr. Sejal Hathi, Letter to Senator Kate Lieber and Representative Tawna Sanchez, Co-Chairs, Interim Joint Committee on Ways and Means, Nov. 3, 2025, regarding 2025 27 agency reduction options, page 24. 3. Ibid., 24, 27. 4. Ibid., 25.
Protect the health care services Oregonians rely on by preserving state funds—don’t leave federal dollars on the table
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