OHSU, Legacy Health Sign Letter of Intent to Form Integrated Health System
With more than 32,000 employees, the integrated health system would be the largest employer in the Portland metro area.
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- Oregon Health & Science University (OHSU) and Legacy Health have signed a letter of intent to merge and form an integrated health system in the Portland metro area.
The OHSU and Legacy boards of directors unanimously approved the letter of intent. The organizations plan to leverage their individual experiences to create a health system focused on community healthcare, education, research, and innovation.
Portland-based OHSU was established as a public corporation and is recognized as a research university dedicated to advancing health sciences. The organization has experience in treating complex patient needs and administering statewide healthcare training and education programs, according to the press release.
Legacy is a nonprofit health system that provides a range of services to residents in the Portland/Vancouver metro area and mid-Willamette Valley. The health system operates hospitals, primary and specialty clinics, and outpatient facilities.
If finalized, the proposed merger will result in a health system with more than 32,000 employees, over 100 locations, and more than 3 million patient visits annually. The health system would also be the largest employer in the Portland metro area.
“Our mission is to provide good health for our people, our patients, our communities, and our world. By combining with OHSU, we will expand our ability to deliver on our mission,” Kathryn Correia, president and CEO of Legacy Health, said in the press release.
“In addition to ensuring access to high-quality essential healthcare for patients, the combined system will continue to be the region’s most exceptional place to work and learn, while supporting research and education for the next generation of healthcare professionals.”
OHSU and Legacy leaders will participate in the strategy development of the merged system, which aims to attract advanced practice providers, physicians, nurses, and other healthcare professionals. The system plans to invest in technologies, education, and development initiatives to support its workforce.
“OHSU has enjoyed a decades-long relationship with Legacy Health, united by a shared commitment to improving the health and well-being of people in Oregon and beyond,” said Danny Jacobs, MD, MPH, FACS, president of OHSU. “Now, we have an opportunity to join together and take a decisive next step that will help deliver on our promise to ensure the best access and care for all who need us, today and in the future. We look forward to our next chapter with Legacy and the exciting potential of our combined strengths and vision.”
According to the letter of intent, OHSU will commit $1 billion over ten years, financed primarily through bond offerings, to support primary- and community-based services. The commitment will help the health system expand clinical programs, sites of care, care models, and technology solutions, in addition to maintaining essential services like preventive medicine, the organizations said.
Legacy will direct its net cash on hand and investment at closing to a new independent foundation that promotes physical and mental well-being and addresses health inequities.
The organizations plan to establish a definitive agreement in the upcoming months, with the transaction expected to close in 2024, subject to regulatory reviews and customary closing conditions.
The deal is likely to face significant federal and state oversight. Oregon passed a healthcare competition law in 2021 that went into effect last year, allowing state officials to deny transactions that would lead to higher prices, less competition, or limited care access.
