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A patient’s death in March 2025 put federal funds for Oregon State Hospital in jeopardy. But in recent days this peril appears to have passed as the Centers for Medicare & Medicaid Services found Oregon’s locked psychiatric hospital to be in compliance with federal standards.
In a news release, the state heralded the development as a sign of improvement. The “decision affirms the significant progress staff have made to strengthen patient care and safety,” Oregon Health Authority director Dr. Sejal Hathi said in a written statement, adding, “Our charge now is to hardwire these gains into everyday practice.”
The state hospital has faced much scrutiny over the years; this is not the first time CMS has threatened to restrict federal dollars over concerns of inadequate conditions. (WW examined the hospital’s dysfunction in 2022 and returned to the subject late last year, exploring how the patient population has transformed over the past two decades.)
The most recent scrutiny was prompted by the March 18 death of a patient who was held in seclusion.
Investigators found the hospital had failed to provide a safe environment for the patient, and responded inadequately when that patient had a medical emergency.
Hospital superintendent Dr. Sara Walker resigned shortly afterward while the state created a “stabilization plan” to improve patient care and safety.
This week, the state listed a few of the changes it says it made: It says it sought to increase collaboration to identify interventions to prevent or reduce the time a patient is in seclusion or restraint. It also says it implemented a video monitoring team to provide additional support for in-person assessment of patients in seclusion or restraint.
And it says it improved coordination to mitigate the need to seclude or restrain people.
On Jan. 6 and 7, according to government documents, inspectors from the federal government made an unannounced visit to the Salem campus to see if it was up to snuff.
This week, the feds followed up with their results, sending the Oregon Health Authority a letter “rescinding” the prior action toward terminating funding, and noting the hospital to be in compliance with federal safety and care quality standards.
The decision means the hospital returns to a routine cycle of surveys to ensure compliance.
