A provision in Oregon's hospice licensure bill halts new provider licenses until state rulemaking is complete—with narrow exceptions.
Most health services owners in Oregon don't realize that a provision buried in SB1575 has effectively frozen the ability to launch a new hospice business in the state. If you're considering entering the hospice market, this law directly affects your timeline and your ability to obtain an initial license.
Section 5(2) of SB1575 imposes a moratorium on new hospice licenses. Specifically, the Oregon Health Authority (OHA) cannot issue an initial license to a new hospice provider until the agency completes rulemaking related to hospice licensure requirements. The rulemaking process can take up to 24 months from the bill's passage.
This means a startup hospice provider cannot legally operate—and cannot generate revenue—until OHA finishes writing the rules that govern the industry. The moratorium took effect immediately when the bill passed, thanks to an emergency clause in Section 7.
The moratorium applies to any organization seeking to obtain an initial hospice license in Oregon. Existing licensed hospice providers are not affected; the restriction targets new market entrants only.
However, there is a narrow exception: applicants may be eligible for licensure during the moratorium if they serve an underserved area or an underserved population. The specifics of what qualifies as "underserved" will be defined in OHA's rulemaking.
SB1575 became effective immediately upon passage due to the emergency clause. The moratorium remains in place until OHA completes its rulemaking process. While the law does not specify a hard deadline for rulemaking completion, administrative rulemaking in Oregon typically requires several months to over a year, with 24 months being a reasonable upper-bound estimate for complex healthcare regulations.
New applicants should not expect to receive an initial license before rulemaking is complete, unless they qualify for the underserved area or population exception.
If you are planning to launch a hospice provider in Oregon, you face a significant delay in market entry. Your business plan timeline should account for the moratorium period. You cannot begin operations or serve patients until you hold a license, which cannot be issued during the moratorium—except under the narrow exception noted above.
If you believe your proposed hospice would serve an underserved area or population, you should monitor OHA's rulemaking process closely to understand how that exception is defined and whether you may qualify.
Existing hospice providers should note that this moratorium does not restrict their operations or renewals; it only blocks new entrants to the market.
For detailed guidance on how this provision may affect your specific situation, consult with legal counsel familiar with Oregon healthcare licensing. The Oregon Health Authority's website will post rulemaking notices as the agency moves forward with the required regulatory process.
Source: Oregon SB1575, Sections 5(2) and 7, relating to hospice licensure.