by Shaanth Nanguneri, Oregon Capital Chronicle
August 12, 2026
This is a developing story and may be updated
The superintendent of the Oregon State Hospital who was appointed less than a month ago by a since-departed director of the Oregon Health Authority is out as head of the troubled state-run mental hospital, the health authority said Wednesday.
Oregon Health Authority Interim Director Fariborz Pakseresht made a leadership change “after careful consideration” that resulted in the end of Oregon State Hospital Superintendent Sean Murphy’s trial period with the agency, according to a Wednesday agency news release.
The move comes after the summer resignation of former OHA Director Sejal Hathi, who faced criticism over the state hospital’s struggles with staffing and reliance on restraining patients and seclusion. Hathi’s resignation took effect Aug. 1, and she has maintained that her decision was due to personal and family priorities.
Hathi appointed Murphy in June following a national recruitment process and his first day was July 13. But he faced scrutiny after he previously oversaw a Washington hospital that lost millions in federal funding due to compliance issues and patient safety concerns nearly a decade ago.
“Oregon State Hospital is a uniquely complex and important institution. It requires strong, trusted, accountable leadership, particularly given the needs of patients, families, employees, and the public,” the agency said in an unsigned statement. “Because of this, superintendents are held to the highest standards possible. OHA’s focus is on ensuring that an institution as important as the Oregon State Hospital has the leadership it needs to fulfill its mission and serve patients safely and effectively.”
The health authority said on Wednesday that its leadership will resume recruitment efforts for a permanent superintendent. It said that Jim Diegel, a well-known hospital operations strategist in Oregon who helmed the Bend-based St. Charles Health System, would resume serving as interim superintendent. That’s a role he also held last year when the agency was searching for a permanent superintendent.
“Jim previously served in this role, has led in implementing positive changes and improvements to patient care at OSH, and will provide continuity and stability while OHA searches for the hospital’s next permanent superintendent while protecting the important progress underway at Oregon State Hospital,” the agency said in a statement.
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