Officials from Oregon Health & Science University and Moda Health, both based in Portland, are reportedly in talks to pursue a merger, according to The Lund Report.
OHSU officials have until the end of 2016 to exercise the option to convert its $50 million surplus into a 25 percent equity position in Moda Health. The two organizations signed an agreement outlining the equity agreement in November 2015.
Any potential investment decision must still be approved by the OHSU board and the state Insurance Commissioner.
According to the article, OHSU has been seeking an insurance partner since its former partner, Oregon Health CO-OP went defunct in July.
In an official statement, OHSU officials said they were hesitant about pursuing a potential partnership with Moday after state regulators placed the insurer under supervision earlier this year. The state has since lifted the order.
Spokespeople from both organizations deny seeking any affiliation, according to the report.