Oregon Health & Science University and Legacy Health, both based in Portland, said May 5 that they mutually agreed to terminate their planned merger.
“After careful consideration of the evolving operating environment, the organizations have determined that the best way to meet the needs of the communities they serve is to move forward as individual organizations,” they wrote in a prepared statement.
Neither system provided additional details on the reasoning behind their decision.
OHSU and Legacy announced their plans in August 2023 and in May 2024 signed a definitive agreement to combine their systems. The agreement was inked around the same time that OHSU notified staff of plans to lay off at least 500 employees, citing financial challenges.
The combined system under OHSU Health would have covered 12 hospitals and more than 32,000 employees, and been one of Oregon’s largest service providers to Medicaid members. As part of the merger, OHSU had said it would invest about $1 billion over a decade to support primary care and community-based services that would be part of the combined system.
With the merger plan called off, both systems emphasized their continued commitment to patient care.
“OHSU and Legacy will remain focused on each health system’s individual strategic objectives, with the goal of remaining well-positioned to continue supporting their people, patients and communities,” their statement said. “OHSU and Legacy will continue to promote the health and well-being of people in Oregon, southwest Washington and beyond.”
The Oregon Nurses Association, which has supported the merger plan, expressed disappointment about the cancelled deal while emphasizing that no matter the employer, union members will “continue to advocate for all front-line caregivers, their patients and a stronger healthcare system in Oregon.”