The Oregon Health Authority is responsible for most state health services and for implementing health care reforms. In 2021, the Oregon Legislature passed House Bill (“HB“) 2362 to address health care consolidation in the state, creating the Health Care Market Oversight (HCMO) program which operates within OHA’s Health Policy and Analytics Division. This law directs OHA to review proposed transactions, such as mergers and acquisitions, that involve health care entities, including hospitals, health insurance companies, and provider groups. HCMO ensures that health care transactions in Oregon are transparent and support lower costs, increased equity and access, and better quality. Through the HCMO program, OHA also monitors, evaluates, and reports on the statewide impacts of health care consolidation. HCMO regulatory requirements include the requirement that an analysis be performed to ensure there is no substantial likelihood that a transaction will jeopardize the financial stability of a health care entity involved in the transaction. NASHP is currently under contract, Contract No. 184582, as an advanced financial analyst providing support to OHA’s HCMO program in their review of material change transactions (“transactions”) under ORS 415.501. This request is for a Special Procurement to enter into a new contract with NASHP to perform the same financial analysis services to support OHA’s HCMO reviews as it currently performs under its existing contract. NASHP’s contract resulted from a sole source procurement with services to be rendered at zero cost to the HCMO program utilizing NASHP’s existing grant funds. OHA now seeks to enter into a new contract with NASHP at cost for a longer term to support multiple future transactions submitted to HCMO for review. NASHP no longer has grant funds available to provide this work at zero cost for OHA. NASHP is offering to expand its assistance to HCMO for a significantly lower cost than would be offered by other expert financial analysts across the country. (See Section 12.b.i below for cost savings.) NASHP is a nonpartisan organization, predominantly funded by grants, that supports state leaders by providing a variety of policy, analytic, and data supports. NASHP publishes model legislation and other tools/guidance for states related to health care consolidation. NASHP has also developed a variety of data tools, including a hospital cost tool that reports on hospital financial measures. NASHP possesses the requisite knowledge and expertise in the industry necessary to fully and competently assist OHA’s HCMO program in these material change transaction reviews. ORS 415.501(14) directs the transacting parties of the material change transaction under HCMO review to reimburse OHA for costs associated with retaining outside advisors to support HCMO reviews; therefore, all expenses OHA pays under this contract will be reimbursed by the entities subject to transaction review.
