OHSU Acquisition of Legacy Health Hits Snag with Community Board Disapproval
Deal News | Apr 08, 2025 | EIN
Oregon Health & Science University's (OHSU) acquisition of Legacy Health encountered a significant challenge as a community review board unanimously voted against the merger. Although the board's recommendation is not binding, it represents a noteworthy obstacle for the intended merger that was announced over 18 months ago. The merger would create Oregon's largest hospital system, enhancing capacity and resource allocation across both entities. The Community Review Board, which has been convening since February, voted 5-0 to recommend that the Oregon Health Authority (OHA) disapprove the transaction, arguing concerns about the potential impact on consumers and the public. Ultimately, OHA will advise the state's Health Care Market Oversight program, which has the authority to approve or reject such mergers.
Sectors
- Healthcare
- Mergers & Acquisitions
Geography
- United States – The article pertains to a merger within the U.S. healthcare system, specifically in Oregon.
- Oregon – OHSU and Legacy Health are both based in Oregon, making the state's healthcare market a relevant geography.
Industry
- Healthcare – The article discusses a merger between two hospital systems, OHSU and Legacy Health, indicating its relevance to the healthcare sector.
- Mergers & Acquisitions – The main focus of the article is the potential merger between two significant hospital systems in Oregon.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Oregon Health & Science University (OHSU) | Target Company | Company | OHSU is a prominent academic health center in Oregon, planning to acquire Legacy Health to become the largest hospital system in the state. |
| Legacy Health | Target Company | Company | Legacy Health is another key hospital system in Oregon, seeking to merge with OHSU to improve financial stability and resources. |
| Community Review Board | Other | Organization | The board evaluates the impact of healthcare transactions on the community and has recommended against the merger. |
| Oregon Health Authority (OHA) | Other | Government | OHA will receive the board's recommendation and advise the state's Health Care Market Oversight program. |
| Health Care Market Oversight Program | Other | Organization | It is responsible for approving or rejecting mergers and acquisitions in Oregon's healthcare sector. |