A proposed joint venture between home care provider Compassus and Providence is under review by the state of Oregon.
The Oregon Health Authority told attorneys representing Compassus in a Monday letter that the transaction must be scrutinized by the state’s Health Care Market Oversight Program. The entity studies healthcare mergers and acquisitions to ensure they won’t result in higher costs or reduced access to Oregon consumers.
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The Oregon Nurses Association called on state regulators to review the deal in a Dec. 10 letter to the Oregon Health Authority. The labor union cited concerns about transparency, patient care and potential negative effects on health outcomes related to the joint venture.
Under the proposed arrangement announced in October, Brentwood, Texas-based Compassus would manage and jointly own Providence’s home health, hospice, private duty nursing and community-based palliative care services. The joint organization, called Providence at Home with Compassus, would stretch across Oregon, Washington, Alaska, California and Texas. Neither company disclosed financial terms of the deal, which is subject to both state and federal regulatory approval.
Renton, Washington-based Providence operates approximately 40 home health and hospice locations across those states. Eleven of those locations are in Oregon.
A Compassus spokesperson said the company asked the Oregon Health Authority for guidance on its review process in November.
"From the outset, we understood regulatory reviews could add time to our anticipated transition timeline. We are prepared and committed to ensuring any questions or concerns are addressed," the spokesperson said.
The state of Oregon has also been analyzing UnitedHealth Group’s proposed $3.3 billion acquisition of home health company Amedisys. The Oregon Health Authority said on its website it expects to complete that review by the end of the month.
