State proposes approval for 60-bed Wilsonville psychiatric hospital

Oregon Health Authority’s (OHA) Certificate of Need program is proposing to approve NEWCO Oregon Inc.’s certificate of need application for a 60-bed, free-standing psychiatric hospital to be located in Wilsonville.

The proposed approval of NEWCO’s application is contingent upon the company meeting certain conditions.

OHA determined that NEWCO has satisfied the burden of proof needed to justify the creation of a 60-bed inpatient psychiatric facility. The draft recommendation is based on the application and accompanying documents; the agency record, including information submitted by both interested and affected parties; and OHA’s evaluation and analysis.

“Oregon Health Authority supports bringing additional behavioral health resources to support the people of Oregon,” said Steve Allen, OHA behavioral health director. “Those resources should be simple to access, responsive to community and individuals’ needs, and support meaningful outcomes for Oregonians.”

NEWCO must meet the following conditions before it receives — and before it can renew — its hospital license under ORS 441.025:

  1. OHA requires, as a condition of licensure under ORS 441.025, that NEWCO meet and maintain all requirements under OAR 309-033-0520(3) as a Class 1 facility hospital.
  2. OHA requires, as a condition of ongoing licensure, that NEWCO dedicate 45% of its bed capacity to serve persons with a court determination of mental illness under ORS 426.130; a person on an emergency hold and in custody pursuant to ORS 426.232, 426.233; or a person in prehearing detention or diversion pursuant to ORS 426.237. NEWCO must demonstrate compliance with this requirement by supplying a quarterly report of discharges broken down by those meeting these criteria.
  3. NEWCO must notify OHA’s Behavioral Health Program within 12 hours if it is refusing care to a patient meeting criteria in Condition 2, is uninsured, or is on Medicaid. This information will be sent to a dedicated email address provided to NEWCO by OHA.
  4. Expansion of bed capacity and ongoing licensure as a hospital under ORS 441.025 shall be conditioned on compliance with the above conditions in addition to any civil penalties assessed by the division for non-compliance with the conditions pursuant to its authority under OAR 333-565-0010.
  5. The conditions above will be evaluated annually and may be modified to ensure that the system needs are adequately addressed.

The Certificate of Need program, administered through the Health Care Regulation and Quality Improvement Section at OHA Public Health Division, is a standardized, regulatory program instituted in 1971. It arose out of the Oregon Legislature’s desire to achieve reasonable access to quality health care at a reasonable cost. ORS 442 charges the program with reviewing proposals for new hospitals and nursing facilities to ensure health services are adequately distributed in the state without unnecessary duplication of services or excessive cost to patients.

This press release was provided by the Oregon Health Authority.