What is Certificate of Need
In an effort to control the rapidly escalating costs of health care through planning and regulation, most states, including Oregon, have Certificate of Need ("CN") programs. As the name implies, the purpose of these programs is to evaluate whether a proposed service or facility is actually needed. They are designed to discourage unnecessary investment in unneeded facilities and services. Oregon’s CN program was instituted 1971 and arose out of the legislature's desire to achieve reasonable access to quality health care at a reasonable cost.
What is subject to CN review in Oregon
ORS 442.315(1) directs that: "Any new hospital or new skilled nursing or intermediate care service or facility not excluded pursuant to ORS 441.065 shall obtain a certificate of need from the Health Services prior to an offering or development." ORS 441.065 addresses the exemption of certain religious institutions. For a definition of the terms "new hospital" and "new skilled nursing or intermediate care service or facility", see ORS 442.015. Oregon Administrative Rule Chapter 333, Division 550 of the CN administrative rules explains in detail what types of projects are subject to CN review.
Notice of Temporary Rulemaking - OAR 333-590 and 615 - "Demonstration of Need for Acute Inpatient Beds and Psychiatric Hospitals"
The Oregon Health Authority (OHA) is temporarily amending rules in OAR chapter 333, divisions 590 and 615, temporarily suspending OAR 333-615-0020, and temporarily adopting OARs 333-615-0025, 333-615-0035, 333-615-0060, and 333-615-0070 relating to the analysis of information an applicant must provide to OHA to demonstrate the need for psychiatric inpatient beds. These amendments are necessary to be able to adequately evaluate a Certificate of Need application using relevant data, methods, and timelines. There are currently outdated data references in the rules that direct an applicant to review data outside the window of time relevant to current applicants. Additionally, there are assumptions built into the current rules that direct an applicant to assume a declining use rate for hospitals, and prescribe methodology built on this now inaccurate trend for Oregon’s hospital use rates. Current rules reference studies that are no longer published or relevant to the grant of a Certificate of Need. Prior to the submission of any letter of intent, the updated rules must be in place so current, relevant data, timelines, and methodology can be analyzed and used for purposes of reviewing the application.
These temporary rules are effective October 22, 2025 through April 19, 2026.
OHA intends to make these rule changes permanent through a permanent rulemaking process prior to expiration.
For more details, please see the Temporary Administrative Order, including the Statement of Need and Justification and the full text of the temporary rule:
CN Updates: Applications under review, decisions and CN Update Archive