The six-hospital system Legacy Health and Springfield, Ore.-based PacificSource Health Plans have signed a letter of intent to create a new partnership in which Legacy Health will purchase a 50 percent stake in the payer.
As part of the agreement, PacificSource will create a new nonprofit organization that will have a 50 percent member interest in the current health insurance company. Portland, Ore.-based Legacy Health will purchase the remaining 50 percent member interest. The new organization will create a regional health plan that will result in new products and options for healthcare consumers in the North West.
"We're excited about the strength of this partnership as we jointly work to improve the health and well-being of the communities we serve," said Ken Provencher, president and CEO of PacificSource Health Plans. "This will further enhance our long standing history of collaboration and coordination with all our provider partners as we work to improve the care, quality and affordability of the health care continuum with our health plan offerings."
The new organization's board of directors will include an equal combination of PacificSource and Legacy Health board members, as well as three independent members from the community.
Legacy Health will make an initial investment in the partnership with additional investments over the next five years.
The partnership will not impact the current relationship the two organizations already have with other providers and insurers. The two organizations expect to have their agreement finalized sometime in 2016.