A Definitive Agreement Signed to Better Serve Patients
Building on longstanding collaborations in pediatrics, cancer and behavioral health, Oregon Health & Science University and Legacy Health have signed a binding, definitive agreement to unite as one health system under OHSU Health. The expanded public system will provide high-quality health care services to patients from across the Pacific Northwest and accelerate our impact as a nationally recognized leader in health, education and science.
OHSU and Legacy Health share a mission of public service and dedication to the region’s most vulnerable populations. Together, the combined Oregon-based system will be one of the largest providers of services to Medicaid members in the state. OHSU Health will focus on improving health outcomes, addressing health care inequities, and providing access to care for more people, including the medically underserved, through a coordinated network of health care access points in Oregon and Southwest Washington.
“Our agreement with OHSU is an important milestone toward creating a stronger health system better capable of delivering for our patients, our people and our communities,” said Legacy Health Board Chair Charles Wilhoite. “Following many months of thoughtful collaboration between our organizations, we believe this is the right next step to create significant opportunities to improve the health of our region for many years to come.”
The expanded OHSU Health system will create a health and science community better able to attract, retain and train world-class health and science professionals, energizing health care across Oregon and supporting our regional economy. OHSU Health is also dedicated to fostering a safe and respectful environment where employees and learners feel welcome and can do their best work.
“Right now, increased demand and capacity restraints are keeping patients around the region from accessing the services OHSU Health is uniquely capable of providing,” said OHSU President Danny Jacobs, M.D., M.P.H., FACS. “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 it's complex cancer care on Marquam Hill or behavioral health treatment in Northeast Portland.”
As one, integrated system, OHSU Health’s 12 hospitals, 100-plus locations and about 30,000 employees will provide the scale, resources and expertise needed to deliver seamless, integrated health care through a more coordinated and better-connected network. By combining, OHSU and Legacy Health will deliver access to vital preventive medicine, primary care and specialty services in the system’s community hospitals and clinics. OHSU Health will also provide leading-edge clinical trials and highly specialized services uniquely available at Oregon’s academic health center.
“With greater opportunities and an enhanced system from which to grow our shared future as OHSU Health, the expanded health system will stabilize and grow in the innovative services, tools and technologies essential for the care of people by our integrated teams, and allow us to continue to train the next generation of clinicians, scientists and educators,” said OHSU Board Chair Wayne Monfries. “We are excited about what we can achieve for our communities.”
With a capital commitment from OHSU of approximately $1 billion over 10 years, financed mostly through bond offerings, the integrated system will make needed investments in care infrastructure to improve the quality of essential services and health outcomes for communities across the region.
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.
In the coming months OHSU and Legacy Health will submit an application to the State of Oregon’s Healthcare Marketplace Oversight Program (HCMO), which reviews certain health care business transactions in Oregon.
After the HCMO application is filed, the state regulatory review process will begin. During that time, leaders of both organizations will continue to work with their employees to ensure a smooth transition and effective planning for operational integration, pending regulatory approval.