PORTLAND, Ore. (KOIN) — Oregon Health & Science University is one step closer to merging with Legacy Health, albeit that step could take several months.
The institution announced it filed a Health Care Market Oversight notice with the Oregon Health Authority on Thursday. According to state health officials, the HCMO program allows them to decide whether business deals — like mergers — will help or hinder Oregonians.
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OHSU leaders said the notice points to an integrated health system with far-reaching benefits, due to its role as an institution that is already “publicly accountable, locally controlled and responsive to the specific needs of our state, and, as a public entity, provides unique and specialized care not available elsewhere.”
The university previously pledged to invest $1 billion over 10 years in the combined operation. In a statement, OHSU President Danny Jacobs asserted the merger would manage health care costs since it involves pre-existing resources and services.
“Becoming one public university health system will ultimately benefit everyone, including those who have been historically underserved, and propel Oregon forward as a local and national leader in health, education and science,” Jacobs added.
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The institution also claimed the merger would lead to shorter wait times, along with increased access to preventative and virtual care.
Additionally, OHSU has spoken with local labor organizations like the Oregon Nurses Association and the Service Employees International Union in an attempt to create high-quality jobs. The health system said it is committed to “workforce development, retention and honoring all existing collective bargaining agreements and benefits.”
In June, the entity disclosed hundreds of employees would be laid off as part of “Strategic Alignment Work.” After the merger, it is expected to become Portland’s largest employer with about 30,000 workers.
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The integration was first announced more than a year ago, in August 2023. OHA’s review of the merger notice could take at least six months.
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