Report: Oregon hospitals lost $450 million in 2025, warn of growing crisis

OREGON (KTVZ) -- Oregon hospitals experienced significant financial losses in 2025, leading to the closure of service lines and inpatient beds. More than 1,000 health care workers across the state lost their jobs. The Hospital Association of Oregon warns that further impacts from H.R. one are expected to deepen this crisis.

These challenges underscore the urgent need for policy solutions to support and stabilize hospitals in Oregon.

A new report from the Hospital Association of Oregon, titled “A fraying safety net: Oregon hospitals in crisis,” details these substantial financial setbacks. In 2025, hospitals in the state collectively lost $450 million caring for patients. This was attributed to rising labor costs, insufficient Medicaid and Medicare payments that did not cover care costs, unfavorable insurer behavior and expensive state regulations.

The challenges faced by hospitals are statewide and widespread. In 2025, more than half of all hospitals in Oregon operated at a loss, a group that includes most of the state's larger hospitals and more than 40% of its smaller, often rural facilities. As a result, more than 80% of hospital beds in Oregon were located in hospitals struggling with unsustainable margins.

Hospitals are experiencing pressure from multiple directions, with government payers like Medicare and Medicaid accounting for two-thirds of hospital services but not adequately covering the cost of care. Simultaneously, commercial health insurers have been observed to delay and deny payments for services. Becky Hultberg, president and CEO of the Hospital Association of Oregon, stated, “There isn't a silver lining in these numbers. Oregon hospitals are slipping deeper into crisis. After five years of losses at many of our hospitals, the consequences are impossible to ignore. Communities are losing services, patients have fewer options for care and more than 1,000 Oregonians have lost their jobs.”

Operating costs for hospitals in Oregon have surged by 57.5% since 2020. This increase is driven by a combination of tariffs, supply shortages, pharmaceutical costs, labor expenses and regulatory changes. Over the last decade, Ore. has implemented an increasingly complex and costly regulatory framework, which has diverted resources away from direct patient care.

Oregon hospitals are also preparing for additional financial shocks with the anticipated effects of H.R. one. State estimates indicate that Oregon will receive $12 billion less in federal Medicaid funding, which could lead to 200,000 Oregonians losing health coverage. Hultberg emphasized the urgency of the situation, saying, “As the crisis at Oregon's hospitals grows, Oregonians will be increasingly challenged to access the health care services they need. The time to act is now. Policymakers must understand the seriousness of this moment and take the necessary steps to safeguard the care that Oregonians depend on.”

Policymakers are urged to take necessary steps to safeguard the care that Oregonians depend on.

You can read the full report here.