The beleaguered Oregon Health Authority, under fire since the release of internal records revealed its plan to smear a health care provider it regulates, got more bad news Wednesday.
Willamette Valley Behavioral Health has notified the state it will be filing a lawsuit in connection with the agency's rejection of a proposed 100-bed psychiatric hospital in Wilsonville.
Jason Conger, a former state legislator now practicing law in Bend and representing Willamette, accused the agency of acting on behalf of competing mental health treatment providers.
"The OHA engaged with and cooperated illegally with incumbent hospitals to prevent the entry of competitors, including us, that would offer additional psychiatric beds," he said.
It's not just local competitors objecting to the Wilsonville plan. Some mental health advocacy groups argue that a suburban hospital with no emergency room is not the kind of facility the community needs.
Tensions are running high between the combatants. Conger said the health authority notified his side that it will charge $48,500 to produce the public records requested by Willamette. "It's amazing under the circumstances that OHA is again trying to prevent the release of public records," he said.
Lynne Saxton agreed to resign as health authority's director last week after another set of internal documents set off a furor. The papers outlined a campaign to damage the reputation of FamilyCare, a Portland no-profit that administers Medicaid assistance in partnership with the agency.
FamilyCare and the agency are in locked in a protracted dispute over pricing. The health authority and Saxton insisted the plan was never implemented. Nevertheless, Gov. Kate Brown sought Saxton's resignation. Patrick Allen, who directs the state's Department of Consumer and Business Services, has been named interim director, effective Sept. 1.
The tort notice filed this week by Willamette, a subsidiary of Universal Health Services Inc., was the necessary first step to an actual lawsuit. As remedy, it will seek clearance from the agency to proceed with the hospital.
"A very well financed, very experienced operator of psychiatric hospitals that has been trying for more than a year and build a brand new facility at no cost to the taxpayers," Conger said. "It defies explanation that OHA would actually conclude there's no need for those beds."
-- Jeff Manning
503-294-7606, jmanning@oregonian.com