PORTLAND Ore. (KPTV) – Two healthcare providers in the region announced a major merger on Thursday.
Oregon Health & Science University (OHSU) and Legacy Health have a history of collaborating, but now they have signed a definitive agreement, with OHSU essentially absorbing Legacy.
The agreement signed is to merge as one system under OHSU Health.
Leadership said this union will help them focus on improving patient care and access.
“You have all of the options that will be available in this system, it’s better for the patients,” Wayne Monfries, OHSU Board Chair, said.
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“A continuum of care. A fully integrated system. You keep the patient within the system, the patient moves seamlessly throughout the system, receiving very coordinated care or preventative care,” Charles Wilhoite, Legacy Health Board Chair, said.
The Oregon Nurses Association (ONA) released a statement raising concerns over the potential for higher costs for patients or a negative impact on jobs.
Executives said at this point, they cannot say for sure.
“Think it’s too early to tell what the future looks like. We’ll have a team working on the integration plan to see what the combined system looks like,” Monfries said.
OHSU’s capital commitment is approximately $1 billion over 10 years, financed mostly through bond offerings.
Once the transaction closes, an independent Legacy community foundation will receive funds equal to Legacy Health’s cash minus its debt and a negotiated withhold to make health care grants.
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“The commitment we’re making under the agreement is 10-year capital commitment and we’re going to use the funds on buildings and technology and equipment that represent an investment that will further support our health system’s growth and ability to serve our patients, and we intend to borrow most of that money over time,” Monfries said.
This major move will all play out pending regulatory approval.
“The application, regulatory approval, in particular, the healthcare marketplace oversight program, it may take a while,” Danny Jacobs, M.D., M.P.H., FACS, OHSU President, said.
Next, they will submit an application to the State of Oregon’s Healthcare Marketplace Oversight Program (HCMO). After that is filed, the state regulatory review process will begin.
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