NABIP advocates for patient access to the highest quality care that is affordable from providers through competition in the marketplace. While this merger potentially may reduce competition that could lead to a tightening of the Oregon market, it is very early on. NABIP will monitor developments and communicate with our members as this and other changes continue to evolve over the next few months and years. To address what is happening today, NABIP has assembled information below for an up-to-date point of reference to the OHSU, Legacy merger.

Q: What is the OHSU-Legacy “combination”?
A: Under the terms of an Aug. 14 non-binding Letter of Intent released by OHSU and Legacy, for all practical purposes it is an acquisition of Legacy Health Systems by OHSU. OHSU will be the “parent entity” and “each of Legacy’s subsidiaries will become subsidiaries of OHSU.” OHSU will make a “capital commitment” of approximately $1 billion.

Q: What happens to Legacy’s 50% ownership of PacificSource Health Plans?
A: Under the terms of the Letter of Intent, on closing Legacy’s 50% interest in PacificSource will spin out to a new independent foundation, along with “Legacy’s net cash at closing.” OHSU will contribute $500 million to capitalize the new foundation, in addition to its “capital commitment” to the delivery system. This new foundation, along with OHSU’s existing foundation, will “determine opportunities for alignment and possible consolidation” in the future.

Q: What does this mean for health benefit plan members?
A: Nothing immediately changes in PacificSource provider networks or access to care through Legacy facilities and clinics for other health plan members.

Q: What happens next?
A: Legacy and OHSU intend to finalize their agreement by Nov. 30, 2023. It must be approved by the Oregon Health Authority’s Health Care Market Oversight Program and by the Federal Trade Commission. According to media reports, these processes could take at least a year after Legacy and OHSU finalize their agreement and make the appropriate state and federal regulatory filings.

Q: What is OAHU/NABIP-Oregon’s view about this acquisition?
A: Many details of the deal are unknown, and to take a position at this stage would be based on speculation. We will reserve judgment until much more becomes known through the OHA and FTC public processes.