Hospitals’ lawsuit against Oregon Health Authority over mental health can continue

Published 8:30 am Thursday, June 6, 2024

St. Charles Bend. 

Oregon Health Authority failed its duty to provide access for long-term care to patients experiencing severe mental illness, according to a ruling Wednesday by the U.S. Court of Appeals Ninth Circuit.

In the ruling, the appeals court returned the case to the U.S. District Court for the District of Oregon, overturning the lower court’s dismissal of the suit brought by four of the state’s largest health systems.

St. Charles Health System, Legacy Health, Providence Health & Services and Peace Health filed the lawsuit against the Oregon Health Authority alleging the state violated the rights of acute mental health patients who are committed because they are not getting the long-term care they need. The lawsuit was filed more than two years ago.

Combined, the four health systems represent more than half the state’s psychiatric beds, which were designed only for short term acute care. The lawsuit claimed patients’ rights were being violated because the state wasn’t taking responsibility for these patients and placing them in care facilities dedicated to treating their persistent mental illnesses, like the Oregon State Hospital. 

“We are thrilled about the ruling as it represents a victory for hospitals,” said Molly Wells Darling, St. Charles Health System senior behavioral health director. “Our ultimate objective is to enhance the behavioral health system of care in Oregon for some of our most vulnerable community members.”

In oral arguments, lawyers representing the health authority conceded that the lack of resources was a long-standing challenge, according to a statement made by representatives of Legacy Health. 

“The court’s ruling allows us to continue pursuing legal action to ensure that there is a functional mental health system in Oregon,” Robin Henderson, Providence behavioral health chief executive, said in a prepared statement. “Such a system and continuum of care must include secure residential treatment facilities, as well as effective community-based services to meet the various needs of this vulnerable patient population.”

Under Oregon law, individuals who are deemed to be a danger to themselves or others may be committed by the state for involuntary treatment for up to 180 days. Hospitals are often in the front line for patients requiring urgent mental health care. But once stabilized the patients need to be transferred to a long-term psychiatric facility such as the Oregon State Hospital. 

The state hospital has been at capacity and has mainly been treating patients accused of crimes. The involuntary treated patients then must be confined to the community hospital that initially treated them.

St. Charles has maintained that it is not equipped to care for mental health patients long term. St. Charles Bend has a five-bed secure psychiatric service unit and a 15-bed acute care behavioral health unit. 

By leaving patients in community hospitals, patients cannot recover meaningfully, the lawsuit alleged. 

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