Oregon Considers Bill to Stop Hospice Scammers From Entering State

Why It Matters

The bill strengthens regulatory oversight, protecting vulnerable patients and Medicare/Medicaid funds from fraudulent hospice operators. It sets a precedent for cross‑state health‑care licensing safeguards.

Key Takeaways

• Bill mandates CAHPS data for hospice licensing
• Criminal checks required for administrators and owners
• Applicants must prove one‑year financial solvency
• Exemptions possible only with CMS approval
• Targets out‑of‑state hospice fraud

Pulse Analysis

Oregon’s Senate Bill 1575 reflects a growing trend of state governments tightening oversight of post‑acute care providers. By tying licensure to measurable quality indicators such as CAHPS survey results, the state aligns hospice entry standards with federal Medicare expectations. This data‑driven approach not only deters entities with poor performance records but also gives patients and families clearer signals about provider reliability, a critical factor in end‑of‑life care decisions.

The legislation’s emphasis on criminal background checks for hospice administrators, medical directors, and significant owners addresses a longstanding loophole where fraudsters could re‑enter new markets under different corporate names. Requiring disclosure of any past convictions or regulatory violations creates a transparent vetting process, reducing the risk of repeat offenses. Moreover, the financial capacity clause ensures that new hospices possess sufficient resources to sustain operations for at least a year, protecting patients from abrupt service interruptions that can jeopardize care continuity.

If enacted, Oregon could become a model for other states grappling with hospice fraud, prompting a ripple effect of similar licensing reforms nationwide. The bill may also influence CMS policies by highlighting the value of state‑level data collection and enforcement. For investors and healthcare operators, the new requirements signal a need for heightened compliance investments, while patients and payers stand to benefit from higher quality, more accountable hospice services.

Oregon Considers Bill to Stop Hospice Scammers from Entering State

By Jim Parker

Senior editor, Hospice News and Palliative Care News

February 13, 2026

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Article

Senate Bill 1575 would prevent hospices that have committed fraud or provided substandard care in other states from setting up shop in Oregon.

If enacted, the Oregon Health Authority, a state agency, would examine the history of companies seeking to open hospices before approving a license, including Consumer Assessment of Healthcare Providers and Systems (CAHPS) survey results, among other information.

“If an applicant operates a hospice program in this state or any other state, to be eligible for an initial or renewal license, the applicant must have submitted the consumer assessment survey results for the previous year to the [U.S.] Centers for Medicare and Medicaid Services, unless the applicant received an exemption from [CMS],” the bill’s text stated.

The bill would also require criminal background checks on hospice administrators, medical directors and owners with more than a 5 % stake in the company.

New hospices entering Oregon would also need to demonstrate that they had sufficient funds to serve patients for one year as of the time they open.

“The authority shall adopt a financial and operational capacity review process to ensure that applicants possess adequate resources to operate safely and continuously for the initial licensure period of one year,” the bill’s text indicated.

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About the author

Jim Parker is a senior editor of Hospice News and Palliative Care News. A Chicago‑based journalist who has covered health care and public policy since 2000, his personal interests include fire performance, the culinary arts, literature and general geekery.

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