State Policy · OR
Oregon State Hospital Superintendent Removed After One Month
Oregon Health Authority removed Oregon State Hospital Superintendent Sean Murphy after a one-month trial period, following the August 1 resignation of OHA Director Sejal Hathi who appointed him in June. Jim Diegel, former interim superintendent and hospital operations strategist, will return to lead the facility while OHA searches for a permanent replacement. The facility faces ongoing compliance issues including a July federal lawsuit over patient care and nearly $5 million in fines for failing to place patients within court-ordered seven-day timelines, though it returned to compliance in June 2026.
Why it mattersOregon State Hospital provides inpatient psychiatric services for Medicaid beneficiaries and individuals in custody, and leadership instability affects continuity of care, federal compliance, and state budget exposure to ongoing penalties.