Week Twelve Takeaways
Date: February 25, 2025
On February 21, our second public comment was posted as an open letter to the Oregon Health Authority. The OHA and community review board will consider all public comments as inputs into reviewing the proposed acquisition of Legacy Health by OHSU. The compelling message we want to highlight is the economic impact of the proposed federal spending cuts if this transaction is approved. This topic has not been formally addressed as a transaction risk, and its consequences extend far beyond the healthcare community.
OHSU's mission depends on federal funding for research, education, and patient care, particularly through NIH grants and Intergovernmental Transfer (IGT) funds to support Medicaid programs. Any proposed federal spending cuts would require states to offset the loss of that funding. If states were to discontinue the Affordable Care Act Medicaid expansion, for example, Oregon would experience the largest percent enrollment reduction in the nation.
Given this context, allowing a public corporation that relies on government funding to acquire six hospitals – placing 58% of the inpatient Medicaid population in that entity – is irresponsible. Compensating for the loss of funding will be significantly more challenging with this transaction. Oregonians could face higher taxes and cuts to essential state programs, such as education, eligibility, benefits, and payments to providers and health plans.
Last week, the OHA announced a public hearing for the proposed transaction on March 5. Community review board meetings are virtual and open to the public, and everyone is welcome to attend. On February 18, the board developed an initial list of questions to ask OHSU and Legacy leaders at the public hearing. More information is located on the OHSU-Legacy transaction page.
Week Twelve News: