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OHA and CCOs describe surge in behavioral health utilization and tighter federal scrutiny of directed payments

House Interim Committee on Behavioral Health · January 14, 2026
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Summary

Oregon Health Authority and CCO representatives said directed payments that began in 2023 increased outpatient capacity but also drove utilization beyond expected revenue, producing multi-hundred-million-dollar shortfalls for some coordinated care organizations and prompting narrower 2026 targeting amid heightened federal review.

Oregon Health Authority presenters and coordinated care organizations told the House Interim Committee on Behavioral Health that policy changes that boosted behavioral health capacity also produced rapid increases in service utilization that now strain CCO finances.

Chelsea Guest, CCO finance director at OHA, described how directed payments (begun in 2023 after a major legislative funding increase) were designed to ensure rate increases flowed to providers. She said the program’s design evolved…

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