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Consumer groups raise concerns about proposed OHSU-Legacy merger

OSPIRG, Oregon Consumer Justice and Health Care for All Oregon say that the deal is likely to raise prices and hurt consumers if approved without stronger protections dictated by state officials. The university says it's addressed the concerns already in its application.
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An ambulance pulls into the entrance driveway for Oregon Health & Science University's emergency department on Wed., Oct. 27, 2021. | OHSU/CHRISTINE TORRES HICKS
January 23, 2025

A coalition of state and national consumer groups has joined the ranks of those raising concerns about Oregon Health & Science University’s proposed absorption of Legacy Health.

The Oregon State Public Interest Research Group, known as OSPIRG, joined with Oregon Consumer Justice, Health Care for All Oregon and a national organization known as the United States of Care to jointly submit their comments to the state officials reviewing the proposed merger,

The comments largely echo the concerns of other high-profile opponents of the merger — including former Gov. John Kitzhaber and Brown University — that the deal would raise costs and likely hurt care. But the groups add a new twist: that if the deal is approved, the state should require the merged entity to abide by strict conditions to protect consumers.

“We know that hospital consolidation usually leads to higher prices without increased quality of care and in fact quite often leads to decreased access,” Charlie Fisher, executive director of OSPIRG, told The Lund Report. “At the very least there should be strong consumer protections put in place.”

OHSU has long defended the proposed deal as good for the public. In a response to the consumer groups' comment, OHSU issued a statement saying it had already made commitments to address the concerns raised by the coalition, adding that the merger would help improve things, rather than hurt them. 

“Our communities are experiencing some of the longest wait times in the country for new patient appointments across various medical specialties —and we don’t need to accept this status quo,” according to the statement. It adds that OHSU, a public agency, has no incentive to raise costs beyond what it needs to establish financial stability.

Both systems have reported financial challenges of late, and report that the merger as described in their application would not turn a profit for years.

The consumer coalition’s comments recommend a variety of specific conditions, such as requiring OHSU, a state teaching hospital that is a public entity, from engaging in anticompetitive practices. The system is exempt from state and federal laws prohibiting such behavior.

It says the deal will affect consumer choice, as well as cost: “The proposed transaction between OHSU and Legacy will have significant impacts on the market dynamics in the Portland metro area which is already heavily consolidated. This proposed transaction will provide OHSU with the highest market share in the area in terms of inpatient services, in addition to increased market share across other lines of service. 

“OHSU will also assume operations of Legacy’s 70 outpatient clinics including primary care, urgent care and specialty care clinics throughout the same regions, in addition to operating six hospitals. Given the reach of these two health systems, the proposed transaction would have a significant impact on the emergency services, maternal health, behavioral health, and other types of care choices available for consideration by Oregonians.”

The state has enlisted a review board composed of volunteers to complete a six-month review of the project.

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