The state of Oregon has launched a comprehensive review of the proposed joint venture between home health company Compassus and Providence Health.
Oregon Health Authority’s Health Care Market Oversight program began looking deeper into the deal after a preliminary review ended last month, according to a Friday news release. The preliminary review found the transaction could substantially change how many Oregon residents receive home health and hospice care.
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The state agency said it will be seeking public comment and other feedback from patients, caregivers, health systems, insurers and other home health providers to fully consider the potential impacts of the deal. It gave no timeframe for when the review will be completed.
Under an agreement the two companies signed last fall, Bentwood, Texas-based Compassus would manage and jointly own Providence’s home health, hospice, community-based palliative care and private duty nursing services under the name Providence at Home with Compassus. Neither company disclosed financial terms of the deal.
Compassus and Providence began delivering home-based services in Alaska, Texas and Washington last month in the first phase of the joint venture. The second phase of the joint venture, which will include home care operations in Oregon and California, is expected to be finalized in the coming months, pending regulatory reviews, the two companies said.
A Providence spokesperson said in an email the company respects the review process and will continue to work closely with the Oregon Health Authority to comply with all review requirements.
A Compassus spokesperson said the company understands the state’s review process and looks forward to providing home health and hospice care in Oregon.
Renton, Washington-based Providence offers home health services in 24 locations across Oregon, Washington, California and Alaska. The nonprofit health system also operates hospice and palliative care services in those states, as well as Texas. Providence is the largest provider of home health and hospice services in Oregon based on 2023 data, Oregon Health Authority said in the release. The state said Providence served approximately 12,000 home health patients and about 2,500 hospice patients across 19 counties in 2023.
Compassus provides home health, hospice, palliative care and home infusion services across 30 states, but does not currently offer those services in Oregon.
