ORS 442.315¹
Certificate of need
  • rules
  • fees
  • enforcement
  • exceptions
  • letter of intent

(1) Any new hospital or new skilled nursing or intermediate care service or facility not excluded pursuant to ORS 441.065 (Exemption of certain religious institutions) shall obtain a certificate of need from the Department of Human Services prior to an offering or development.

(2) The department shall adopt rules specifying criteria and procedures for making decisions as to the need for the new services or facilities.

(3)(a) An applicant for a certificate of need shall apply to the department on forms provided for this purpose by department rule.

(b) An applicant shall pay a fee prescribed as provided in this section. Subject to the approval of the Oregon Department of Administrative Services, the Department of Human Services shall prescribe application fees, based on the complexity and scope of the proposed project.

(4) The Department of Human Services shall be the decision-making authority for the purpose of certificates of need.

(5)(a) An applicant or any affected person who is dissatisfied with the proposed decision of the department is entitled to an informal hearing in the course of review and before a final decision is rendered.

(b) Following a final decision being rendered by the department, an applicant or any affected person may request a reconsideration hearing pursuant to ORS chapter 183.

(c) In any proceeding brought by an affected person or an applicant challenging a department decision under this subsection, the department shall follow procedures consistent with the provisions of ORS chapter 183 relating to a contested case.

(6) Once a certificate of need has been issued, it may not be revoked or rescinded unless it was acquired by fraud or deceit. However, if the department finds that a person is offering or developing a project that is not within the scope of the certificate of need, the department may limit the project as specified in the issued certificate of need or reconsider the application. A certificate of need is not transferable.

(7) Nothing in this section applies to any hospital, skilled nursing or intermediate care service or facility that seeks to replace equipment with equipment of similar basic technological function or an upgrade that improves the quality or cost-effectiveness of the service provided. Any person acquiring such replacement or upgrade shall file a letter of intent for the project in accordance with the rules of the department if the price of the replacement equipment or upgrade exceeds $1 million.

(8) Except as required in subsection (1) of this section for a new hospital or new skilled nursing or intermediate care service or facility not operating as a Medicare swing bed program, nothing in this section requires a rural hospital as defined in ORS 442.470 (Definitions for ORS 442.470 to 442.507) (5)(a)(A) and (B) to obtain a certificate of need.

(9) Nothing in this section applies to basic health services, but basic health services do not include:

(a) Magnetic resonance imaging scanners;

(b) Positron emission tomography scanners;

(c) Cardiac catheterization equipment;

(d) Megavoltage radiation therapy equipment;

(e) Extracorporeal shock wave lithotriptors;

(f) Neonatal intensive care;

(g) Burn care;

(h) Trauma care;

(i) Inpatient psychiatric services;

(j) Inpatient chemical dependency services;

(k) Inpatient rehabilitation services;

(L) Open heart surgery; or

(m) Organ transplant services.

(10) In addition to any other remedy provided by law, whenever it appears that any person is engaged in, or is about to engage in, any acts that constitute a violation of this section, or any rule or order issued by the department under this section, the department may institute proceedings in the circuit courts to enforce obedience to such statute, rule or order by injunction or by other processes, mandatory or otherwise.

(11) As used in this section, "basic health services" means health services offered in or through a hospital licensed under ORS chapter 441, except skilled nursing or intermediate care nursing facilities or services and those services specified in subsection (9) of this section. [1989 c.1034 §2; 1993 c.722 §3; 1995 c.727 §39; 2001 c.875 §3; 2003 c.14 §258]

Notes of Decisions

Where Office of Health Policy (OHP) found that sec­ond hospital MRI project did not exceed statutorily imposed financial threshold requiring certificate of need, OHP made no final decision subject to pro­vi­sions for judicial review of contested case. Mercy Medical Center v. Office of Health Policy, 121 Or App 587, 855 P2d 1156 (1993)

"Decision" means deciding whether to issue certificate of need to entity that requires one to imple­ment project, not deciding whether proposed project is above or below financial threshold. Mercy Medical Center v. Office of Health Policy, 121 Or App 587, 855 P2d 1156 (1993)

Chapter 442

Atty. Gen. Opinions

Participa­tion of hospital owners or administrators in joint review of hospital expenses, services, (1978) Vol 38, p 2060; State Health Planning and Develop­ment Agency's responsibility to evaluate and act upon nursing home budget and rate increase notifica­tions where posi­tions and funds are deleted from agency's budget, (1979) Vol 40, p 56; health systems agency's failure to review or submit recommenda­tion and findings on applica­tion for certificate of need, (1979) Vol 40, p 135

1 Legislative Counsel Committee, CHAPTER 442—Health Planning, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors442.­pdf (2007) (last ac­cessed Feb. 12, 2009).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 442, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­442ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information