Oregon health overhaul approved

SALEM, Ore. – An ambitious plan to change the way people get their health care is on its way to reality after the Oregon Senate voted Tuesday to advance Gov. John Kitzhaber’s effort to focus on coordinating care and rewarding doctors for healthy patients.

After beating back a Republican effort to limit liability in medical malpractice cases, senators voted to let the state press forward with plans for creating coordinated care organizations. The new regional organizations would be responsible for integrating care from doctors, dentists and mental health experts for Oregon Health Plan patients in their area.

The changes would apply directly to 600,000 patients with state-funded health care, but officials say many others will see an impact as the health care system adapts.

Kitzhaber hopes the overhaul would make Oregon among the first states to get a handle on rapidly rising health care costs, which threaten funding for schools, police and other government programs. Proponents say the health care system could save billions by eliminating duplicated procedures and properly managing chronic conditions like diabetes and heart disease so patients can avoid expensive care in emergency rooms.

“The vote today brings us one step closer to creating a more sustainable health care system through improved health and reduced waste and inefficiency,” Kitzhaber said in a statement.

Skeptics worry the proposal is being implemented too quickly, that there’s not enough money to make it work effectively or that it creates incentives to deny care. Proponents say their plan addresses those concerns.

“It will not work. It is going to fail,” said Sen. Fred Girod, R-Stayton, a dentist who said he’d prefer approaches like raising co-pays that might discourage patients from seeking unneeded care.

The Senate’s approval followed weeks of rising tension over GOP efforts to add new limits on medical malpractice liability for health care providers involved with coordinated care organizations.

The measure next goes to the House, where a key Republican has been heavily involved in drafting it and lawmakers from both parties have repeatedly said it’s likely to pass.

The Legislature approved the concept for Kitzhaber’s initiative last year, telling him to work out the details and return for approval. Senate Bill 1580 would approve an implementation plan worked out over much of the last year.

Kitzhaber’s overhaul would focus in particular on patients with chronic diseases, mental illnesses and addictions, who account for the largest share of health care spending. Proponents envision new efforts to keep in touch, ensuring they make medical appointments and take medications.