Portland, Oregon. (KPTV) – Oregon Health & Science University and Legacy Health have announced its intention to terminate an agreement to meet as a system.
Ohsu and Legacy announced in August 2023 plans to create an integrated health system and signed a final agreement last May.
On Monday, organizations announced that they agreed to terminate the merger agreement.
“After a careful examination of the evolving operational environment, organizations have determined that the best way to meet the needs of the communities they serve is to move forward as individual organizations,” they said in a joint press release.
Organizations say they will now focus on the individual objectives of each health system.
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The dismissal especially before Oregon Health Authority (OHA) was able to make a decision on the merger, but only a few weeks after a community advisory council asked the OHA unanimously to reject the proposal.
Howard Cohen worked as a doctor for almost 50 years, including at Legacy. He says that his time on advisory advice has left him more questions than answers.
“In other situations, mergers like this have reduced quality and reduced the satisfaction of patients and the family towards their care,” said Cohen. “I think it was clear that, at least, that there would be price increases.”
In his letter to the OHA, the members of the board of directors expressed their concerns concerning an increase in insurance costs for patients and a reduction in competition, compromising the quality of care.
In short, Cohen says that hospitals have made major promises, but have given no evidence of the reason why the merger would be better for patients.
“I think it would have been bad for the metropolitan region, and bad for Oregon in general,” said Cohen.
The Oregon Nurses Association, which supported the agreement on Monday, published a declaration on Monday, stating in part: “Although we are disappointed with their decision to terminate the agreement, this will have no impact on ONA’s continuous work to organize front line caregivers and fight for fair contracts that favor workers and patients on profits.”
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