Council directs staff to join regional letter opposing OHA plan to freeze Southern Oregon hospital wage index increases

5771545 · July 16, 2025

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Summary

Council voted to direct staff to sign onto a letter protesting an Oregon Health Authority proposal that would freeze wage‑index increases used in Medicaid hospital reimbursement for Southern Oregon hospitals; staff said affected hospitals fear several years of zero inflation adjustments under the proposed rule.

City staff presented a request from a hospital lobbyist to sign a letter protesting a proposed Oregon Health Authority rule change affecting Medicaid reimbursement for Southern Oregon hospitals. The change would replace the current wage‑index approach and effectively freeze increases in a key cost component of the reimbursement calculation for several years, staff said. Staff reported Ashland and Medford have already provided letters and that multiple Jackson County cities were contacted. Councilors agreed the health of local hospitals is important to the community and moved to direct staff to sign on to the joint protest letter to OHA. The motion passed on roll call with councilors recorded as voting in favor. A councilor asked that future external-letter requests include an offer that the requesting organization present in person as a speaker so council members can hear the request directly; staff noted prior outreach and affirmed the city will sign the letter as directed.