Members of Trillium Community Health Plan and other Eugene residents largely support a proposal to sell their Eugene-based coordinated care organization to a Fortune 500 healthcare corporation.
During a public hearing held in Eugene, Robert Larson, a Trillium member, questioned how the sale to Centene Corporation would impact services to people such as himself.
“What’s lacking in the information that has been presented is there’s no review of quality of services they provide,” he said. “Which I think for the public is certainly a significant issue.”
Once the acquisition is final, Centene will become the sole shareholder of Agate Resources and all of their subsidized companies.
Agate Resources, the parent company of Trillium, is a private corporation with 20 shareholders, according to Debi Farr, director of government and public affairs, who did not specify how many of these shareholders are physicians. She also declined to comment how the shareholders, which include Terry Coplin, CEO, would financially benefit once the sale is completed. Last year, Coplin earned $492,324.
Centene’s CEO, Michael Neidoroff, meanwhile, earned $19.3 million in 2014, including $13.9 million of stock. Centene’s current stock price is 69.76 a share, up 1.65 percent, and the base cash salary stands at $1.2 million, according to DeAnne Lane, spokesperson for Centene.
At the hearing, Larson also raised questions about executive compensation in relation to the quality of services.
“Such compensation undoubtedly comes from some source of income. Usually, when we see corporations taken over by corporations, it is a reduction in services and an increase in profits.”
Trillium’s growth is on the rise, nearly doubling from 57,000 members in January 2014, to more than 100,000 members today. In 2014, Trillium closed the year with a net profit of $8 million, doubling that of 2013, when profits reached $3.9 million.
Coplin and the management team of Trillium intend to continue leading operations after the sale is completed.
Once the acquisition is final, later this fall, Centene will become the sole shareholder of Agate Resources and its subsidized companies.
The public can comment on this transaction until 5 p.m. on May 28, and Laura Cali, the state’s insurance commissioner must approve the sale. Once she signs the order, there will be a 60 day waiting period before the transaction is final.
Coplin and the management team of Trillium intend to continue leading operations after the sale is completed.
Those interested can submit their comments to Ryan Keeling via email at [email protected], or by mail to Ryan Keeling, Financial Regulation Section, Oregon Insurance Division, P.O. Box 14480, Salem, OR 97309-0405.
Alexandria can be reached at [email protected].
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