Or. Admin. Code § 409-070-0015

Current through Register Vol. 63, No. 12, December 1, 2024

Section 409-070-0015 - Materiality Standard

(1) Pursuant to ORS 415.500(6) and (9) and ORS 415.501(4), a covered transaction under OAR 409-070-0010 is a material change transaction and shall be subject to review under these rules if:

(a) At least one party to the transaction had average annual revenue of $25 million or more in the party's three most recent fiscal years; and

(b) Another party to the transaction:

(A) Had average annual revenue of $10 million or more in that party's three most recent three fiscal years; or

(B) If such party is a newly organized legal entity, is projected to have at least $10 million in revenue over its first full year of operation at normal levels of utilization or operation. A party is a newly organized legal entity if:

(i) The entity is newly formed or capitalized in connection with the transaction or in connection to a health care entity for the purposes of a transaction including but not limited to a special purpose entity; or

(ii) The entity is an existing entity whose form of ownership is changed in connection with the transaction. Changes in the form of ownership include but are not limited to a change from physician-owned to private equity-owned and publicly-held to a privately-held form of ownership.

(2) A covered transaction under OAR 409-070-0010 that qualifies as material under paragraph (1) of this rule shall be subject to review under these rules notwithstanding that the transaction involves a health care entity located in this state and an out-of-state entity if the transaction may increase the price of health care services or limit access to health care services in this state.

Or. Admin. Code § 409-070-0015

OHP 1-2022, adopt filed 02/22/2022, effective 3/1/2022; OHP 10-2022, amend filed 12/08/2022, effective 12/8/2022

Statutory/Other Authority: ORS 415.501

Statutes/Other Implemented: ORS 415.500 to 415.900