Oregon Passes HB 4020 on Extended Stay Centers

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Oregon Passes HB 4020 on Extended Stay Centers

Oregon ASC Association spearheaded the effort

After five years of development and discussions, the Oregon Legislative Assembly passed House Bill 4020 unanimously. This bill creates a license for extended stay recovery centers, where patients can have 48 hours to recover from the time of admission at the ASC, as compared to the 24-hour limitation for ASCs, says Chris D. Skagen, chief executive officer of Strategic Resources Group (SRG) in Denver, Colorado.


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“As they say, it takes a village!” Skagen says. “I am thankful for our active membership in the Oregon ASC Association (OASCA), who were instrumental in getting legislators to take action and vote in favor of our bill. Our members really stepped up to the plate to host tours, make repeated phone calls and emails, and comment regularly on this legislative initiative. Legislators really listen to their constituents, and their ongoing involvement really helps us stay on the health care radar.”

The bill is a great example of collaborating with all stakeholders to enhance the health care landscape in Oregon, says Simon Schwartz, chief operating officer of SRG. “I appreciate the opportunity to work with the Oregon Association of Hospitals and Health Systems and Providence Health and Services to create a bill that was passed unanimously by the House Health Committee, Ways and Means Subcommittee on Human Services, Ways and Means Committee, the full house and the full senate. It demonstrates how you can work with those that oppose a concept over many years and distill it down to a tangible bill that addresses everyone’s goals and concerns.”

While there were countless stakeholders and work groups working on the bill, OASCA lobbyist Doug Riggs, owner of Northwest Grassroots & Communications in Portland, Oregon, was an integral member of the team to develop the bill, Skagen says.

“This bill was passed because SRG worked tirelessly each year with physicians, administrators and nurses continuously educating us about the need for lobbying legislators, touring them in our facilities and contributing to our PAC,” says OASCA President Marilynn Daberkow. “Chris, Simon and Doug constantly visit us and have personal relationships with all our facilities in the Oregon.”

Riggs says, “This recovery model is all about Oregon’s Triple Aim: better health, better care and lower costs. Our efforts will enhance the patient experience and complement the quality of care given in the outpatient setting.”

The bill could save Oregon Educators Benefit Board (OEBB) and Public Employees Benefits Board (PEBB) $12-15 million as the number of outpatient surgeries is expected to almost double in the next decade, Skagen says. “The cost savings on Medicare patients will depend on how the Centers for Medicare & Medicaid Services (CMS) handles the state request for an 1135 waiver.

The 1135 waiver is an option to ensure that sufficient items and services are available to patients, in this case Medicare, Skagen explains. “Oregon is considering to develop a single license for the ASC and extended stay recovery center, and also asking for a pilot program that would potentially pay for overnight care of Medicare patients,” he says. “CMS has not indicated how they will handle this request. If it is not granted, Oregon will pursue a two-license model that we see in states such as Colorado.

“This could be a groundbreaking initiative that would place Oregon as the first state in the country to be able to demonstrate how much money Medicare can save by further utilizing outpatient services and an extended stay recovery center model,” Skagen adds.