A provision in SB1575 halts new hospice provider licenses in Oregon until the state completes rulemaking—with narrow exceptions.
Most Oregon health service owners haven't heard about the hospice licensing freeze buried in SB1575. But if you're considering entering the hospice market as a new provider, this provision directly affects your ability to operate.
SB1575, signed into law with an emergency clause, imposes a moratorium on new hospice licenses effective immediately. Under Section 5(2), the Oregon Health Authority (OHA) cannot issue an initial hospice license to any new provider until the agency completes rulemaking on hospice licensure standards. OHA has 24 months from the bill's enactment to finish that rulemaking, per Section 4.
In practical terms: if you want to start a new hospice business in Oregon, you cannot obtain your initial license during this period—even if you meet all current requirements.
The moratorium applies to new market entrants: independent operators, startups, or organizations new to hospice provision in Oregon seeking their first license.
Four narrow exemptions exist. You may still obtain a license if you:
If none of these apply to your situation, the moratorium blocks your entry until rulemaking concludes.
The moratorium takes effect immediately upon passage. OHA must complete rulemaking within 24 months. Once rulemaking is finished—or if 24 months pass without completion—the moratorium lifts and OHA can resume issuing new initial licenses.
The actual duration depends on OHA's rulemaking pace. The law sets a ceiling of 24 months but does not guarantee the moratorium ends sooner.
If you're evaluating hospice as a business opportunity, this provision eliminates the option of launching a standalone new provider during the moratorium window. Prospective operators should assess whether one of the four exemptions applies to their model. Those considering acquisition of an existing license or expansion within a facility structure remain viable pathways.
The rulemaking process itself may also signal regulatory direction. OHA's new standards could affect licensing requirements, operational costs, or service scope—information worth monitoring as rulemaking unfolds.
For existing hospice providers, the moratorium may reduce new competition in the near term, though the long-term competitive landscape will depend on what standards OHA adopts.
Source: Oregon SB1575, Section 5(2), Page 4; Section 4 (24-month rulemaking deadline); Section 7 (emergency clause). For a detailed summary specific to your business model, contact your state trade association or legal counsel.