Proposed OHSU-Legacy merger set to go under a microscope

Oregon Health & Science University’s proposed takeover of Legacy Health would create a merged system that controls five out of six hospitals in Multnomah County and seven out of 13 hospitals in the Portland area, according to a new state report.

On top of that, the beefed-up OHSU system would control the state’s only hospitals offering general pediatric services and advanced trauma care.

The new report issued by the state’s health care merger review office shows the first-blush impressions of regulators who will determine whether the long-delayed, high-stakes merger proposal goes forward — at a time when hospital mergers and their effects on costs are under increasing scrutiny nationally .

The application submitted by OHSU a month ago portrayed Portland-based Legacy as an all-but-failing enterprise , contending that a merger would help both entities and patients. Supporters say a merger would prevent Legacy from being swallowed up by a national chain.

The state office overseeing the review was formed by a 2021 law intended to protect consumers, patients and workers from potential harms due to consolidation, such as higher costs, reduced quality and lack of competition .

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