Medicaid Reimbursement Cuts: Impact on Therapy Providers in Central Oregon (2026)

A crisis is unfolding in Central Oregon's healthcare system, and it's hitting therapy providers hard. The recent announcement by PacificSource Community Solutions, the coordinated care organization for Oregon Health Plan (Medicaid) members, has sent shockwaves through the community. With a 30% cut to reimbursement rates, therapy providers are facing an impossible choice: continue serving Medicaid clients at a loss or terminate their contracts.

'We are devastated', says Kristen Kane, owner and speech-language pathologist at Central Oregon Speech and Language, a Bend-based clinic. The reductions, she explains, make it financially unsustainable to continue providing care to Medicaid clients. The clinic, which has explored every option, is now left with no choice but to terminate its PacificSource contract, affecting nearly a third of its caseload.

But here's where it gets controversial... Kane argues that these reimbursement rates don't cover the true cost of care. She emphasizes that without immediate action, access to therapy will be severely restricted for families who rely on these services the most. And this is the part most people miss: the impact of these cuts will be felt immediately and acutely.

Other local providers, offering a range of essential therapies, are facing similar dilemmas. The potential consequences are dire: longer waitlists, a shortage of available therapists, and the potential loss of vital services for children and adults with developmental delays, disabilities, and neurological conditions. It's a perfect storm that threatens to disrupt the lives of vulnerable individuals and their families.

Central Oregon Speech and Language is calling on state and federal lawmakers, PacificSource, and the community to intervene. They urge a restoration of reimbursement rates that accurately reflect the cost of providing these specialized services. The clinic encourages families and community members to contact their legislators, to voice their concerns about a model they describe as unsustainable, threatening the care of vulnerable Oregonians.

In response, PacificSource, a not-for-profit health plan, states that their mission is to keep healthcare affordable and accessible. They acknowledge the challenging Medicaid environment and the need to align provider reimbursement with state funding. However, they emphasize the limited flexibility they have due to the direct tie between funding and the state budget. PacificSource aims to protect access and sustain their safety-net responsibilities while operating within these constraints.

The full press release from PacificSource is available, but the question remains: Can a balance be struck between keeping healthcare affordable and ensuring providers can continue delivering essential services? What are your thoughts on this complex issue? Feel free to share your opinions and engage in a thoughtful discussion in the comments below.

Medicaid Reimbursement Cuts: Impact on Therapy Providers in Central Oregon (2026)
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