SB 1575

83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session
  Enrolled
  Senate Bill 1575
Sponsored by Senators PATTERSON, GELSER BLOUIN, MANNING JR, Representatives
   ANDERSEN, NELSON; Senators FREDERICK, GOLDEN, GORSEK, JAMA, MEEK, NERON
   MISSLIN, PROZANSKI, REYNOLDS, TAYLOR, WEBER, Representatives BOWMAN, CHAICHI,
   CHOTZEN, FRAGALA, GAMBA, GOMBERG, GRAYBER, HARTMAN, LEVY B, MCDONALD,
   MUNOZ, NATHANSON, NOSSE, PHAM H, TRAN, WALTERS, WISE (Presession filed.)
  CHAPTER .................................................
  AN ACT
Relating to hospice licensure; creating new provisions; amending ORS 443.860; and declaring an
     emergency.
     Whereas the provision of high-quality hospice services is essential for the compassionate care
of terminally ill Oregonians and their families; and
     Whereas enhanced regulation of new hospice program licenses is necessary to prevent the rapid
proliferation of unqualified or fraudulent providers and to protect vulnerable patients; and
     Whereas a temporary moratorium on new hospice program licenses is necessary to allow the
Oregon Health Authority sufficient time to strengthen licensing standards and enforcement mech-
anisms; now, therefore,
Be It Enacted by the People of the State of Oregon:
     SECTION 1. ORS 443.860 is amended to read:
     443.860. (1) A person may not establish, [conduct] operate or maintain a hospice program pro-
viding hospice services, or hold itself out to the public as a hospice program, without obtaining a
license from the Oregon Health Authority.
     [(2) The authority:]
     [(a) Shall adopt rules to carry out the provisions of ORS 443.850 to 443.869, including but not
limited to rules for licensure that require an in-person site inspection of each licensed hospice program
at least once every three years.]
     [(b) May accept certification by a federal agency or accreditation by an accrediting organization
approved by the authority as evidence of compliance with the requirements for licensure adopted under
paragraph (a) of this subsection if:]
     [(A) The certification or accreditation meets standards and conditions established for hospice pro-
grams by the Centers for Medicare and Medicaid Services;]
     [(B) The hospice program invites the authority to participate in any exit interview conducted by the
agency or organization; and]
     [(C) The hospice program provides the authority with copies of all documentation requested by the
authority concerning the certification or accreditation.]
     [(3) The fee to obtain or renew a hospice program license is $1,140.]
Enrolled Senate Bill 1575 (SB 1575-A)  Page 1
     [(4) The authority shall prescribe by rule the form and manner for application for or renewal of
a license. The authority shall issue a license to an applicant that has the necessary qualifications, meets
all requirements established by the authority by rule and has paid the fee.]
     [(5) A license issued under this section is valid for one year and is not transferable. A license may
be renewed by payment of the fee and demonstration of compliance with requirements for renewal es-
tablished by the authority by rule.]
     (2) The authority shall prescribe the form and manner for applying for an initial license
or renewal of a license.
     (3) The authority shall establish by rule fees for initial and renewal license applications,
not to exceed the costs of administering ORS 443.850 to 443.869. In establishing application
fees under this section, the authority may:
     (a) Adopt a graduated fee structure based on factors such as annual patient census or
total revenue; and
     (b) Include the costs of completing the criminal records checks required under this sec-
tion.
     (4) An application for an initial license shall include:
     (a)(A) Any negative performance history of the applicant in Oregon or another state,
including:
     (i) Any hospice or other health care license suspension or revocation, adverse regulatory
finding or other sanction;
     (ii) Any determination, adjudication or settlement related to health care fraud or abuse;
and
     (iii) Any exclusion from Medicare, Medicaid or any other federal or state health care
program.
     (B) As used in this paragraph, “applicant” includes any entity managed by the proposed
administrator or proposed medical director of the applicant and any entity in which an owner
of the applicant holds a five percent or greater ownership interest, but does not include an
individual health care practitioner;
     (b) Documentation demonstrating that the proposed administrator and proposed medical
director of the applicant meet minimum training and qualification requirements, as estab-
lished by the authority by rule; and
     (c) The tax status of the applicant.
     (5) Upon receipt of an application and fee for an initial license, the authority shall:
     (a) Complete a criminal records check under ORS 181A.195 on:
     (A) The proposed administrator;
     (B) The proposed medical director; and
     (C) If the applicant is a privately owned entity, any individual who holds a five percent
or greater ownership interest in the applicant entity; and
     (b) Review the information submitted under subsection (4) of this section.
     (6) The authority may deny an application for an initial license:
     (a) Based on the severity, frequency or timing of the applicant’s negative performance
history, as described in subsection (4) of this section;
     (b) If the authority determines that the hospice program knowingly provided false infor-
mation, as described in subsection (11) of this section; and
     (c) For other reasons established by the authority by rule.
     (7) The authority shall issue an initial license to an applicant that:
     (a) Meets all requirements under ORS 443.850 to 443.869 and rules adopted under ORS
443.850 to 443.869; and
     (b) Has paid the application fee.
     (8) A license issued under this section is valid for one year and is not transferable.
Enrolled Senate Bill 1575 (SB 1575-A)  Page 2
    (9) A license may be renewed by payment of the application fee established under sub-
section (3) of this section and demonstration of compliance with requirements for renewal
established by the authority by rule.
    (10) The authority may accept certification by a federal agency or accreditation by an
accrediting organization approved by the authority as evidence of compliance with the re-
quirements for license renewal adopted under this section if:
    (a) The certification or accreditation meets standards and conditions established for
hospice programs by the Centers for Medicare and Medicaid Services;
    (b) The hospice program invites the authority to participate in any exit interview con-
ducted by the agency or organization; and
    (c) The hospice program provides the authority with copies of all documentation re-
quested by the authority concerning the certification or accreditation.
    (11) The authority may deny an application for an initial license or renewal of a license
and may suspend or revoke a hospice program’s license if the authority determines that the
hospice program knowingly provided false information under this section or section 3 of this
2026 Act.
    (12) A person may not hold an ownership interest in a hospice program licensed under
this section if the person has been:
    (a) Excluded from participation in the Medicare or Medicaid programs; or
    (b) Found liable for health care fraud or abuse in any jurisdiction.
    (13) The authority shall adopt rules to carry out the provisions of ORS 443.850 to 443.869,
including but not limited to rules that require an in-person site inspection of each licensed
hospice program at least once every three years.
    SECTION 2. Section 3 of this 2026 Act is added to and made a part of ORS 443.850 to
443.869.
    SECTION 3. (1) As used in this section, “consumer assessment survey” means a survey
developed by the Centers for Medicare and Medicaid Services that assesses the experiences
of patients who died while receiving hospice care and the experiences of the patients’ in-
formal primary caregivers.
    (2) The Oregon Health Authority may require an applicant for an initial license or re-
newal of a license under ORS 443.860 to submit the performance history from other states,
including past licensing survey results, of:
    (a) The hospice program applying for a license;
    (b) A person holding a five percent or greater ownership interest in the hospice program;
    (c) The administrator or proposed administrator of the hospice program; and
    (d) The medical director or proposed medical director of the hospice program.
    (3) If an applicant operates a hospice program in this state or any other state, to be eli-
gible for an initial or renewal license under ORS 443.860, the applicant must have submitted
the consumer assessment survey results for the previous year to the Centers for Medicare
and Medicaid Services, unless the applicant received an exemption from the Centers for
Medicare and Medicaid Services.
    SECTION 4. The Oregon Health Authority shall complete rulemaking required under the
amendments to ORS 443.860 by section 1 of this 2026 Act no later than 24 months after the
effective date of this 2026 Act.
    SECTION 5. (1) As used in this section:
    (a) “Hospice program” and “hospice services” have the meanings given those terms in
ORS 443.850.
    (b) “Underserved area” means a geographic area of this state in which residents do not
have adequate access to hospice services, including:
    (A) An area with no hospice program currently serving residents;
    (B) An area in which existing hospice programs lack capacity to meet community need;
and
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    (C) An area designated by state or federal laws or regulations as rural, frontier or med-
ically underserved.
    (c) “Underserved population” means a group of individuals that experience barriers to
accessing hospice services, including:
    (A) Residents of rural or frontier counties;
    (B) Members of the nine federally recognized Indian tribes in this state;
    (C) Individuals with limited English proficiency;
    (D) Individuals with disabilities;
    (E) Members of racial or ethnic minority communities; and
    (F) Individuals with low incomes or inadequate health care coverage.
    (2) Except as provided in subsection (3) of this section, until the Oregon Health Authority
has completed rulemaking required under the amendments to ORS 443.860 by section 1 of
this 2026 Act, the authority may not issue any new initial licenses under ORS 443.860.
    (3) During the time frame specified in subsection (2) of this section, the authority may
issue a new initial license under ORS 443.860 to the following:
    (a) A hospice program licensed under ORS 443.860 that is seeking a new initial license to
operate a hospice program in a new service area;
    (b) A hospice program licensed under ORS 443.860 that is seeking a new initial license
based on a change of ownership;
    (c) A health care provider licensed in this state, long term care facility as defined in ORS
442.015 or residential care facility as defined in ORS 443.400 that is seeking to provide hospice
services to patients or residents of the provider or facility; and
    (d) An applicant that proposes to serve an underserved area or an underserved popu-
lation.
    SECTION 6. Section 5 of this 2026 Act is repealed on January 2, 2029.
    SECTION 7. This 2026 Act being necessary for the immediate preservation of the public
peace, health and safety, an emergency is declared to exist, and this 2026 Act takes effect
on its passage.
Passed by Senate February 24, 2026  Received by Governor:
  ........................M.,........................................................., 2026
        ..................................................................................
  Approved:
  Obadiah Rutledge, Secretary of Senate
  ........................M.,........................................................., 2026
        ..................................................................................
  Rob Wagner, President of Senate
  ..................................................................................
  Tina Kotek, Governor
Passed by House March 4, 2026
  Filed in Office of Secretary of State:
        ..................................................................................   ........................M.,........................................................., 2026
  Julie Fahey, Speaker of House
  ..................................................................................
  Tobias Read, Secretary of State
Enrolled Senate Bill 1575 (SB 1575-A)  Page 4