Oregon hospitals are facing a growing financial crisis, with a total loss of $450 million in 2025. This significant loss is attributed to rising labor costs, insufficient Medicaid and Medicare payments, and unfavorable insurer behavior. The Hospital Association of Oregon warns that further impacts from H.R. one are expected to deepen this crisis.

Financial Challenges

The challenges faced by hospitals are statewide and widespread. In 2025, more than half of all hospitals in Oregon operated at a loss, including most of the state’s larger hospitals and over 40% of its smaller, often rural facilities. As a result, more than 80% of hospital beds in Oregon were located in hospitals struggling with unsustainable margins.

Operating costs for hospitals in Oregon have surged by 57.5% since 2020, driven by a combination of tariffs, supply shortages, pharmaceutical costs, labor expenses, and regulatory changes. The state’s increasingly complex and costly regulatory framework has diverted resources away from direct patient care.

Becky Hultberg, president and CEO of the Hospital Association of Oregon, stated, “There isn’t a silver lining in these numbers. Oregon hospitals are slipping deeper into crisis. After five years of losses at many of our hospitals, the consequences are impossible to ignore. Communities are losing services, patients have fewer options for care, and more than 1,000 Oregonians have lost their jobs.”

Call to Action

Policymakers are urged to take necessary steps to safeguard the care that Oregonians depend on. The Hospital Association of Oregon emphasizes the urgency of the situation, warning that further impacts from H.R. one could lead to 200,000 Oregonians losing health coverage.

Original reporting: KTVZ (Central Oregon) — read the source article.