The Oregon Health Authority has determined that a joint venture between Renton, Wash.-based Providence and home care provider Compassus must undergo review under the state's Health Care Market Oversight (HCMO) program, Oregon Public Broadcasting reported Dec. 18.
The deal, announced in October, involves Providence transferring partial ownership of its 24 home health locations across Alaska, California, Oregon, and Washington, along with 17 hospice and palliative care sites in Alaska, California, Oregon, Texas, and Washington, to Compassus. Under the agreement, Compassus will manage these facilities, which will operate as "Providence at Home with Compassus."
Initially, Providence and Compassus planned to finalize the transaction by the end of the year. Licensing records obtained by the Oregon Nurses Association and shared on the HCMO website indicate the deal was expected to close Dec. 29. However, the HCMO review process is likely to delay the timeline, as the program requires at least 30 days and can take up to 180 days to evaluate such deals.
The HCMO program allows state regulators to impose conditions on mergers and acquisitions or reject deals deemed anti-competitive or harmful to consumers or health outcomes in Oregon.
On Dec. 10, Thomas Doyle, general counsel for the Oregon Nurses Association, raised concerns with state regulators, stating that Providence had not submitted the required notice for the transaction despite internal reorganizations being underway. In a Nov. 8 letter to licensing officials, Providence said it planned to close the deal Dec. 29.
"There's a strong case that the proposed deal needs HCMO approval and that Providence is either trying to avoid the process or rushing to get last-minute approval," Mr. Doyle wrote.
Providence spokesperson Gary Walker told Oregon Public Broadcasting the nonprofit had filed the necessary documents. According to state regulators, Compassus' attorneys formally requested a decision Nov. 21 on whether the transaction required HCMO review.
"We fully intend to work closely with the Oregon Health Authority and follow all the requirements of the review process," Mr. Walker said.
Compassus has established similar joint ventures with organizations such as St. Louis-based Ascension, Cincinnati-based Bon Secours Mercy Health, and Columbus-based OhioHealth.