# ORS § 442.342: 442.342 Waiver of requirements > Oregon · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.342 ## Section - **Citation:** ORS § 442.342 - **Heading:** 442.342 Waiver of requirements - **Jurisdiction:** Oregon - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** OR Code / Title 36 / Chapter 442 / Section 442.342 ## Text (1) Notwithstanding any other provision of law, a hospital licensed under ORS 441.025 (License issuance) , in accordance with rules adopted by the Oregon Health Authority, may apply for waiver from the provisions of ORS 442.325 (Certificate of need for health care facility of health maintenance organization) , and the authority shall grant the waiver if, for the most recently completed hospital fiscal year preceding the date of application for waiver and each succeeding fiscal year thereafter, the percentage of qualified inpatient revenue is not less than that described in subsection (2) of this section. (2) Intentionally left blank —Ed. (a) The percentage of qualified inpatient revenue for the first year in which a hospital is granted a waiver under subsection (1) of this section may not be less than 60 percent. (b) The percentage in paragraph (a) of this subsection shall be increased by five percentage points in each succeeding hospital fiscal year until the percentage of qualified inpatient revenue equals or exceeds 75 percent. (3) As used in this section: (a) “Qualified inpatient revenue” means revenue earned from public and private payers for inpatient hospital services approved by the authority pursuant to rules, including: (A) Revenue earned pursuant to Title XVIII, United States Social Security Act, when such revenue is based on diagnostic related group prices that include capital-related expenses or other risk-based payment programs as approved by the authority; (B) Revenue earned pursuant to Title XIX, United States Social Security Act, when such revenue is based on diagnostic related group prices that include capital-related expenses; (C) Revenue earned under negotiated arrangements with public or private payers based on all-inclusive per diem rates for one or more hospital service categories; (D) Revenue earned under negotiated arrangements with public or private payers based on all-inclusive per discharge or per admission rates related to diagnostic related groups or other service or intensity-related measures; (E) Revenue earned under arrangements with one or more health maintenance organizations; or (F) Other prospectively determined forms of inpatient hospital reimbursement approved in advance by the authority in accordance with rules. (b) “Percentage of qualified inpatient revenue” means qualified inpatient revenue divided by total gross inpatient revenue as defined by administrative rule of the authority. (4) Intentionally left blank —Ed. (a) The authority shall hold a hearing to determine the cause if any hospital granted a waiver pursuant to subsection (1) of this section fails to reach the applicable percentage of qualified inpatient revenue in any subsequent fiscal year of the hospital. (b) If the authority finds that the failure was without just cause and that the hospital has undertaken projects that, except for the provisions of this section, would have been subject to ORS 442.325 (Certificate of need for health care facility of health maintenance organization) , the authority shall impose one of the penalties outlined in paragraph (c) of this subsection. ear of the hospital. (b) If the authority finds that the failure was without just cause and that the hospital has undertaken projects that, except for the provisions of this section, would have been subject to ORS 442.325 (Certificate of need for health care facility of health maintenance organization) , the authority shall impose one of the penalties outlined in paragraph (c) of this subsection. (c) Intentionally left blank —Ed. (A) A one-time civil penalty of not less than $25,000 or more than $250,000; or (B) An annual civil penalty equal to an amount not to exceed 110 percent of the net profit derived from such project or projects for a period not to exceed five years. (5) Nothing in this section shall be construed to permit a hospital to develop a new inpatient hospital facility or provide new services authorized by facilities defined as “long term care facility” under ORS 442.015 (Definitions) under a waiver granted pursuant to subsection (1) of this section. [1985 c.747 §35; 1987 c.660 §9; 1991 c.470 §18; 1995 c.727 §41; 2009 c.595 §753; 2013 c.1 §65] Note: 442.342 (Waiver of requirements) was enacted into law by the Legislative Assembly and added to or made a part of ORS chapter 442 by legislative action but not to any series therein. See Preface to Oregon Revised Statutes for further explanation. Source: Section 442.342 — Waiver of requirements; rules; penalties , https://www.­oregonlegislature.­gov/bills_laws/ors/ors442.­html (accessed May 26, 2025). ## Nearby sections - [ORS § 442.011 442.011 Health Policy and Analytics Division created in Oregon Health Authority](https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.011.md) - [ORS § 442.015 442.015 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.015.md) - [ORS § 442.310 442.310 Findings and policy](https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.310.md) - [ORS § 442.315 442.315 Certificate of need](https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.315.md) - [ORS § 442.325 442.325 Certificate of need for health care facility of health maintenance organization](https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.325.md) - [ORS § 442.342 442.342 Waiver of requirements](https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.342.md) - [ORS § 442.344 442.344 Exemptions from requirements](https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.344.md) - [ORS § 442.347 442.347 Rural hospital required to report certain actions](https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.347.md) - [ORS § 442.361 442.361 Definitions for ORS 442.361, 442.362 and 442.991](https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.361.md) - [ORS § 442.362 442.362 Reporting of proposed capital projects by hospitals and ambulatory surgical centers](https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.362.md) - [ORS § 442.370 442.370 Ambulatory surgery and inpatient discharge abstract records](https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.370.md) - [ORS § 442.372 442.372 Definitions for ORS 442.372 and 442.373](https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.372.md) - [ORS § 442.373 442.373 Health care data reporting by health insurers](https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.373.md) - [ORS § 442.385 442.385 Definitions for ORS 442.385 and 442.386](https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.385.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_OR_T36_C442_S442.342. 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