Dr. Sejal Hathi is on her way out as director of the Oregon Health Authority, with her resignation set to take effect Aug. 1. Gov. Tina Kotek announced the shake-up Thursday, tapping a seasoned state manager to steer the sprawling health agency on an interim basis while the state hunts for a permanent replacement. State officials also made one thing crystal clear: Hathi will not receive a severance payment tied to her departure, closing a short and at-times contentious tenure atop Oregon's health bureaucracy.
No severance, state says
A spokesperson for the Oregon Department of Administrative Services told Willamette Week that "There is no additional compensation or severance agreement tied to her resignation." The outlet notes that the clarification lands amid public scrutiny over several recent high-dollar exit payouts collected by other public officials in Oregon.
Governor names interim director
According to a press release from the Governor's Office, Hathi's resignation becomes effective Aug. 1, and the state will install Fariborz Pakseresht as interim director beginning July 6. The release says Pakseresht, a veteran state manager, will work with Hathi on what officials describe as a "thoughtful transition" while the administration launches a search for a permanent director.
Short tenure and mounting controversies
Hathi took over leadership of OHA in January 2024, according to OPB, and her time at the agency drew criticism over a series of management decisions. Earlier this summer, The Lund Report detailed a $630,000 settlement involving the ousted equity director, a flashpoint that further intensified scrutiny of agency leadership.
What comes next
The governor's move gives OHA some short-term stability while a national search gets underway, with budget pressures and behavioral-health reforms expected to dominate the in-box for whoever takes the job permanently. Journalists and watchdog groups say the "no severance" stance will likely be watched closely in light of recent payouts to other city and state officials, a trend noted by Willamette Week.
