Portland-based Oregon Health & Science University and Legacy Health have signed a binding, definitive agreement to unite as one health system under OHSU Health.
The combined system would comprise 12 hospitals, more than 32,000 employees and be one of the largest providers of services to Medicaid members in Oregon.
"Increased demand and capacity restraints are keeping patients around the region from accessing the services OHSU Health is uniquely capable of providing," OHSU President Danny Jacobs, MD, said in a May 30 news release. "As a single, integrated system, we can better ensure patients receive the right level of care at the right facility without having to travel outside the region, whether its complex cancer care on Marquam Hill or behavioral health treatment in Northeast Portland."
OHSU will invest about $1 billion over 10 years to support primary- and community-based services that will be part of the combined system. The investment will expand clinical programs, locations and care models across Oregon and Southwest Washington while maintaining and growing services, such as preventive medicine, population and public health.
Following transaction close, a Legacy community foundation independent of OHSU will receive funds equal to Legacy Health's cash less its debt and a negotiated withhold, for making grants in support of health, health care and health equity in our communities.
After the merger closes, Legacy will direct its net cash on hand and investments — above outstanding debt — to a new independent foundation, which will promote physical and mental well-being and address healthcare inequity, including social determinants of health and behavioral health.
Leaders of both health systems said they are working with their employees to ensure a smooth transition and effective planning for operational integration, pending regulatory approval.
The Oregon Nurses Association, which represents 18,000 nurses and healthcare professionals, said the proposed merger is a pivotal moment for healthcare in Oregon and has far reaching implications for patients, workers and communities.
"As it becomes Oregon's largest healthcare employer, OHSU must commit to maintaining and improving healthcare coverage and benefits for the more than 30,000 healthcare workers who serve Oregonians across the state and are critical to this merger's success," ONA said in a statement. "OHSU must also commit to honoring Oregon's best-in-the-nation hospital safe staffing law and following the staffing plans and decisions from its internal staffing committees. These dual commitments are necessary to preserve and increase Oregonians' access to healthcare and raise quality standards for all Oregonians."