Heat oil in heavy large pot over medium heat. Add sausage. Sauté to heat through, about 4 minutes. Add chile and oregano. Press in garlic. Stir 2 minutes. Add hominy with juice, salsa verde, 1/2 cup cilantro, and squash. Bring to simmer. Cover, reduce heat to medium-low, and simmer until squash is tender, stirring occasionally, 12 to 15 minutes. Uncover and simmer to thicken, if desired. Transfer chile verde to bowl. Sprinkle with remaining 2 tablespoons cilantro and serve.