Health Planning

ORS 442.740
Powers of director over action under cooperative program


During the review of the annual report described in ORS 442.730 (Review and evaluation of report), after receiving a complaint under ORS 442.735 (Complaint procedure), or on the director’s own initiative, the Director of the Oregon Health Authority may take one or more of the following actions:


If the director determines that a particular decision or action is not in accordance with the order, or that the parties are engaging in anticompetitive activity not permitted by the order, the director may direct the board of governors to identify and implement corrective action to insure compliance with the order or may modify the order.


If the director determines that the cooperative program is engaging in unlawful activity not permitted by the order or is not complying with the directive given under paragraph (a) of this subsection, the director may serve on the cooperative program a proposed order directing the cooperative program to:


Conform with the directive under paragraph (a) of this subsection; or


Cease and desist from engaging in the activity.


The cooperative program shall have up to 30 days to comply with a proposed order under subsection (1)(b) of this section unless the board of governors demonstrates additional time is needed for compliance.


If the director determines that the participants in the cooperative program are in substantial noncompliance with the cease and desist directive, the director may seek an appropriate injunction in the circuit courts of Marion or Multnomah Counties.


If the director determines that a sufficient number of the goals set forth in ORS 442.705 (Legislative findings) (2) are not being achieved or that the cooperative program is engaging in activity not permitted by the order, the director may suspend or terminate approval for all or part of the activities approved and permitted by the order.


A proposed order to be entered under subsection (1)(b) or (4) of this section may be served upon the cooperative program without prior notice. The cooperative program may contest the proposed order by filing a written request for a contested case hearing with the director not later than 20 days following the date of the proposed order. The proposed order shall become final if no request for a hearing is received. Unless inconsistent with this subsection, the provisions of ORS chapter 183, as applicable, shall govern the hearing procedure and any judicial review.


The only effect of an order suspending or terminating approval under ORS 442.700 (Definitions for ORS 442.700 to 442.760) to 442.760 (Status to contest order) shall be to withdraw the immunities granted under ORS 442.715 (Authorized practices under approved cooperative program) (3) for anticompetitive activity permitted by the order and taken after the effective date of the order. [1993 c.769 §9; 2009 c.595 §762]

Law Review Citations

31 WLR 89 (1995)

§§ 442.700 to 442.760

Law Review Citations

31 WLR 89 (1995)

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


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Jun. 26, 2021