Oregon’s Healthcare Law Fails to Block Mergers, Leaving Patients in Disruption

A new mother from Corvallis, Oregon, Dana Gibbon, faced unexpected challenges during her pregnancy when her OB-GYN practice closed just as she needed care. The closure occurred two years after the Corvallis Clinic was acquired by Optum Oregon, a subsidiary of UnitedHealth Group. Despite state laws designed to prevent such disruptions, Gibbon found herself searching for alternative care options in a region struggling with reduced healthcare services.

In 2021, Oregon became the first state to grant its health department authority to block hospital mergers and acquisitions aimed at safeguarding competition and preventing cost increases. The law was intended to ensure that consolidation in the healthcare industry would not harm patients or drive up costs. However, five years later, the state has failed to block any transactions under this law, raising concerns about its effectiveness.

ProPublica’s investigation revealed that while the law led to the withdrawal of two high-profile deals, it has not prevented harmful outcomes in other cases. For instance, UnitedHealth Group acquired LHC Group for $5.4 billion and subsequently closed a rural hospice agency, claiming no reduction in services despite patient concerns. Similarly, Amazon’s acquisition of One Medical resulted in the closure of a Portland practice and a decline in patient satisfaction scores. These examples highlight how the law has fallen short of its intended goals, leaving patients like Gibbon to navigate disrupted care systems.

Critics argue that the state’s oversight program is underperforming, with some transactions slipping through despite potential risks. Dr. John Santa, a retired physician and former member of Oregon’s Health Policy Board, expressed disappointment, stating the program had “fallen so short” of expectations. While regulators acknowledge challenges in enforcing the law during its early stages, they maintain hope for future improvements as the program matures.

The situation in Oregon underscores broader concerns about healthcare consolidation nationwide and raises questions about whether similar laws in other states could face similar pitfalls. For now, patients like Gibbon continue to grapple with the consequences of unregulated mergers, hoping for a system that prioritizes their access to care over corporate interests.