Oregon Revised Statutes

Or. Rev. Stat. § 656.254 (2026)

Medical report forms; penalties and other sanctions; procedure for declaring health care practitioner ineligible for workers’ compensation reimbursement

✓ current as of May 2026
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      656.254 Medical report forms; penalties and other sanctions; procedure for declaring health care practitioner ineligible for workers’ compensation reimbursement. (1) The Director of the Department of Consumer and Business Services shall establish medical report forms, in duplicate snap-outs where applicable, to be used by insurers, self-insured employers and physicians, including in such forms information necessary to establish facts required in the determination of the claim.

      (2) The director shall establish sanctions for the enforcement of medical reporting requirements. Such sanctions may include, but are not limited to, forfeiture of fees and penalty not to exceed $1,000 for each occurrence.

      (3) If the director finds that a health care practitioner has:

      (a) Been found, pursuant to ORS 656.327, to have failed to comply with rules adopted pursuant to this chapter regarding the performance of medical services for injured workers or to have provided medical treatment that is excessive, inappropriate or ineffectual, the director may impose a sanction that includes forfeiture of fees and a penalty not to exceed $1,000 for each occurrence. If the failure to comply or perform is repeated and willful, the director may declare the health care practitioner ineligible for reimbursement for treating workers’ compensation claimants for a period not to exceed three years.

      (b) Had the health care practitioner’s license revoked or suspended by the practitioner’s professional licensing board for a violation of that profession’s ethical standards, the director may declare the health care practitioner ineligible for reimbursement for treating workers’ compensation claimants for a period not to exceed three years or the period the practitioner’s license is suspended or revoked, whichever period is the longer.

      (c) Engaged in any course of conduct demonstrated to be dangerous to the health or safety of a workers’ compensation claimant, the director may impose a sanction that includes forfeiture of fees and a penalty not to exceed $1,000 for each occurrence. If the conduct is repeated and willful, the director may declare the health care practitioner ineligible for reimbursement for treating workers’ compensation claimants for a period not to exceed three years.

      (4) Any declaration that a health care practitioner is ineligible to receive reimbursement under this chapter shall not otherwise interfere with or impair treatment of any person by the health care practitioner.

      (5) ORS 656.735 (4) to (6) and 656.740 also apply to orders and penalties assessed under this section. [1967 c.626 §§3,4; 1975 c.556 §40; 1979 c.839 §30; 1981 c.854 §15; 1987 c.233 §1; 1987 c.884 §27; 1995 c.94 §2; 1997 c.249 §200; 2003 c.170 §12; 2005 c.26 §7]

Notes of Decisions
Cited in 6 cases, 1984–2011 · leading case: Martin v. City of Albany, 880 P.2d 926 (Or. 1994).
Martin v. City of Albany, 880 P.2d 926 (Or. 1994). · cites it 7× “In that bill, the legislature also enacted ORS 656.254(3) to authorize the director to impose sanctions against health care practitioners for providing inappropriate medical treatment, suffering a license revocation or suspension for violation of professional ethical standards,…”
Booth v. Tektronix, Inc., 823 P.2d 402 (Or. 1991). · cites it 6× “[6] ORS 656.254 was enacted as part of the same bill that enacted ORS 656.”
Kemp v. Workers' Comp. Dep't, 677 P.2d 725 (Or. Ct. App. 1984). “A second problem with the rule, which was implied in our opinion, is that it imposes a direct penalty against physicians which we held was not within the statutory authorization.”
Gill v. Dir. of the Dep't of Ins. & Fin., 813 P.2d 564 (Or. Ct. App. 1991). · cites it 4× “ORS 656.254(3). 1 We reverse. On July, 8, 1988, the Oregon State Board of Chiropractic Examiners (Board) issued to petitioner a Notice of Proposed Revocation or Suspension of Chiropractic License.”
Basin Tire Serv., Inc. v. Minyard, 249 P.3d 127 (Or. Ct. App. 2011). “7 See ORS 656.254(l)(c)(F); ORS 656.236(1) (providing that a CDA “resolves all matters and all rights to compensation, attorneys fees and penalties potentially arising out of claims, except medical services, regardless of the conditions stated in the agreement” (emphasis…”
Basin Tire Serv., Inc. v. Minyard, 249 P.3d 127 (Or. Ct. App. 2011). “245(1)(c)(K) authorizes a medically stationary worker, with the approval of the Director of the Department of Consumer and Business Services, to receive "curative care arising from a generally recognized, nonexperimental advance in medical science since the worker's claim was…”
— Or. Rev. Stat. § 656.254(1) — 1 case
Booth v. Tektronix, Inc., 823 P.2d 402 (Or. 1991). “[6] ORS 656.254 was enacted as part of the same bill that enacted ORS 656.”
— Or. Rev. Stat. § 656.254(1)(c)(F) — 1 case
Basin Tire Serv., Inc. v. Minyard, 249 P.3d 127 (Or. Ct. App. 2011). “245(1)(c)(K) authorizes a medically stationary worker, with the approval of the Director of the Department of Consumer and Business Services, to receive "curative care arising from a generally recognized, nonexperimental advance in medical science since the worker's claim was…”
— Or. Rev. Stat. § 656.254(2) — 1 case
Kemp v. Workers' Comp. Dep't, 677 P.2d 725 (Or. Ct. App. 1984). “A second problem with the rule, which was implied in our opinion, is that it imposes a direct penalty against physicians which we held was not within the statutory authorization.”
— Or. Rev. Stat. § 656.254(3) — 2 cases
Martin v. City of Albany, 880 P.2d 926 (Or. 1994). “In that bill, the legislature also enacted ORS 656.254(3) to authorize the director to impose sanctions against health care practitioners for providing inappropriate medical treatment, suffering a license revocation or suspension for violation of professional ethical standards,…”
Gill v. Dir. of the Dep't of Ins. & Fin., 813 P.2d 564 (Or. Ct. App. 1991). “ORS 656.254(3). 1 We reverse. On July, 8, 1988, the Oregon State Board of Chiropractic Examiners (Board) issued to petitioner a Notice of Proposed Revocation or Suspension of Chiropractic License.”
— Or. Rev. Stat. § 656.254(3)(a) — 1 case
Martin v. City of Albany, 880 P.2d 926 (Or. 1994). “In that bill, the legislature also enacted ORS 656.254(3) to authorize the director to impose sanctions against health care practitioners for providing inappropriate medical treatment, suffering a license revocation or suspension for violation of professional ethical standards,…”
— Or. Rev. Stat. § 656.254(3)(b) — 1 case
Gill v. Dir. of the Dep't of Ins. & Fin., 813 P.2d 564 (Or. Ct. App. 1991). “ORS 656.254(3). 1 We reverse. On July, 8, 1988, the Oregon State Board of Chiropractic Examiners (Board) issued to petitioner a Notice of Proposed Revocation or Suspension of Chiropractic License.”
— Or. Rev. Stat. § 656.254(l)(c)(F) — 1 case
Basin Tire Serv., Inc. v. Minyard, 249 P.3d 127 (Or. Ct. App. 2011). “7 See ORS 656.254(l)(c)(F); ORS 656.236(1) (providing that a CDA “resolves all matters and all rights to compensation, attorneys fees and penalties potentially arising out of claims, except medical services, regardless of the conditions stated in the agreement” (emphasis…”
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