The Oregon Insurance Division has approved a merger between PacificSource Health Plan and Portland, Ore.-based Legacy Health.
Under the transaction, Legacy Health has purchased a 50 percent stake in PacificSource for about $247.5 million, according to Oregon Public Broadcasting. Executives will join PacificSource's insurance operations with Legacy Health's five hospitals to create an integrated health system.
Administrators hope the move will better position the system to compete against two major integrated health systems operating in the area: Oakland, Calif.-based Kaiser Permanente and Renton, Wash.-based Providence Health.
Oregon Insurance Commissioner Laura Cali approved the merger after finding no evidence it would decrease regional competition, according to a report released by the Oregon Insurance Commission Monday.