Oregon lawmakers passed HB 4075, providing Bay Area Hospital with a state-backed $44 million loan guarantee to avoid catastrophic service reductions. The 172-bed Coos Bay facility had defaulted on a Bank of Montreal loan.

The mechanism uses up to 20% of the Unclaimed Property and Estates Fund as collateral. The CEO outlined a 20-year refinancing plan. Bay Area Hospital is the only full-service hospital serving Coos and western Douglas counties.

Without the guarantee, the hospital faced downgrade to a Type B facility — losing 50+ beds and eliminating surgical, obstetric, and intensive care for tens of thousands of residents. The hospital published a public resiliency plan.

Watch for: Governor Kotek's signature timeline. The 20-year refinancing buys time but Bay Area must address underlying operational deficits. This legislation sets a precedent — other struggling rural hospitals may seek similar guarantees in 2027.