PacificSource Health Plans and Legacy Health Sign Definitive Agreement
Springfield-based PacificSource Health Plans and Portland-based Legacy Health took another important step toward creating a new partnership, when their respective Boards of Directors approved and both organizations signed a Definitive Agreement to proceed with plans to formalize the partnership. The Definitive Agreement has been filed with the Oregon Insurance Commission for regulatory review and approval, and barring unforeseen delays both parties expect the process to be finalized in mid-2016.
“This is an important and exciting milestone in the process of formalizing the partnership, and one that was reached with significant contributions of time and resources from both sides,” said Ken Provencher, President and CEO of PacificSource Health Plans. “I believe PacificSource has found a partner in Legacy Health that is committed to leveraging our complementary capabilities, and that shares our vision for collaboration when it comes to the health and well being of the communities we serve.”
“We are very excited about this partnership because it helps move us closer to our goal of implementing a successful population health initiative,” said Legacy Health’s President and CEO George Brown, MD, FACP. “We have been working to make population health management a core competency for Legacy, and joining with PacificSource will complement our efforts.”
The two organizations signed an initial Letter of Intent in late October to bring their complementary capabilities together with the goal of improving health care quality, value and access to the communities they serve. Per the terms of the original agreement, PacificSource and Legacy will have an integrated approach that improves the quality of care to members and patients, as well as improving population health, access to care and making care more affordable. The partnership will further strengthen PacificSource as a community-based, not-for-profit, regional health plan with the introduction of new products and options for healthcare consumers.
As a part of the agreement, Legacy Health will purchase a 50 percent member interest in the current company. PacificSource will modify its Board of Directors to be comprised of an equal combination of PacificSource and Legacy board members, as well as three independent members from the community.
Appointees from PacificSource for the new board will include at least two actively licensed physicians and at least three community members. Legacy’s board appointees will include at least two actively licensed physicians and no more than two Legacy employees. One of the independent board members will be an actively licensed physician and two will be community members.
The partnership will not have any impact on the current relationships the two organizations already have with other providers and insurance companies. Legacy is committed to working with its current payers and PacificSource is committed to working with its current providers.
The partnership will give PacificSource a provider partner to support health plan growth and access, while providing Legacy with a health plan partner to facilitate health care transformation throughout the region. The complementary strengths of both organizations will come together to better meet the needs of patients and members now and into the future.
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About Legacy Health
Legacy Health is Oregon’s only locally-owned nonprofit healthcare organization with over 10,000 employees. Legacy includes Legacy Emanuel Medical Center, Randall Children’s Hospital at Legacy Emanuel, Legacy Good Samaritan Medical Center, Legacy Meridian Park Medical Center, Legacy Mount Hood Medical Center, Legacy Salmon Creek Medical Center, Legacy Laboratory Services, and Legacy Research Institute. Legacy also includes over 100 Legacy Medical Group primary care and specialty care clinics.
About PacificSource Health Plans
PacificSource Health Plans is an independent, not-for-profit community health plan serving the Northwest. Founded in 1933, PacificSource is based in Eugene with local offices throughout Oregon, and in Idaho and Montana. The PacificSource family of companies employs 700 people, serves more than 280,000 individuals, and has 3,900 employer clients throughout the Northwest. PacificSource Community Health Plans is a subsidiary of PacificSource Health Plans and markets Medicare Advantage products under the name PacificSource Medicare. PacificSource Community Solutions is a subsidiary of PacificSource Health Plans and provides Medicaid coverage in Oregon through the Oregon Health Plan. For more information visit PacificSource.com.