‘We are devastated’: Bend therapy provider sounds alarm over Medicaid reimbursement cuts
BEND, Ore. (KTVZ)-- Therapy providers across Central Oregon are sounding the alarm after PacificSource Community Solutions, the coordinated care organization for Oregon Health Plan (Medicaid) members, announced a 30% cut to reimbursement rates.
Central Oregon Speech and Language, a Bend-based clinic, says the reductions make it financially impossible to continue serving Medicaid clients without operating at a loss. The clinic plans to terminate its PacificSource contract, which covers nearly a third of its caseload.
“We have spent extensive time exploring every possible option to remain in-network,” said owner and speech-language pathologist Kristen Kane. “But a business cannot stay open while operating in the red. These rates do not cover the cost of care—and without immediate action, access to therapy will be reduced for families who need it most.”
Other local providers—including those offering occupational, physical, and mental health therapy—are facing similar cuts, which they say could force service reductions or closures across the region.
Providers warn that the impact will be immediate: longer waitlists, fewer available therapists, and potential loss of essential services for children and adults with developmental delays, disabilities, and neurological conditions.
Central Oregon Speech and Language is urging state and federal lawmakers, PacificSource, and the community to intervene and restore reimbursement rates that reflect the true cost of care.
The clinic encourages families and community members to contact their legislators to share concerns about what they call an unsustainable model threatening care for vulnerable Oregonians.
Here is a statement from PacificSource, shared with KTVZ news:
"As a not-for-profit health plan, PacificSource’s mission is to keep health care affordable and accessible for our members. We are actively evaluating provider contracts within our network in response to a challenging Medicaid environment and the need to align provider reimbursement with the capitation we receive from the state for Oregon Health Plan members. Because funding is tied directly to the state budget, we have limited flexibility and must ensure that reimbursement structures remain sustainable and equitable across similar types of providers. Our goal is to protect access and sustain our broader safety-net responsibilities while operating within these constraints.
We remain committed to working with providers to explore solutions within the resources available to support the health and well-being of the thousands of people who depend on us."
Below is the full press release:
