OHSU and Legacy cancel planned merger worth billions after nearly two years

Oregon Health & Science University and Legacy Health have called off plans to integrate the two health care systems in a deal estimated to be worth billions.

Nearly two years after OHSU and Legacy first announced their intent to merge, the two said Monday they have entered into a mutual agreement to terminate the transaction, and the deal is now null.

“After careful consideration of the evolving operating environment, the organizations have determined that the best way to meet the needs of the communities they serve is to move forward as individual organizations,” OHSU said in a Monday statement. “OHSU and Legacy will remain focused on each health system’s individual strategic objectives, with the goal of remaining well-positioned to continue supporting their people, patients and communities.”

OHSU announced its acquisition of Legacy Health on Aug. 16, 2023, although discussions began in 2022.

The Oregon Health Authority’s Health Care Market Oversight Program has been reviewing the deal.

OHA assembled a community review board made up of health care professionals, OHSU and Legacy patients, a business owner, and representatives from priority populations, which recently unanimously opposed the planned merger.

The combined health system, OHSU Health, would have encompassed more than 32,000 employees across more than 100 locations, including 10 hospitals, and conducted more than 3 million patient visits annually, according to OHSU. The health system would have been the Portland-Vancouver area’s largest employer.

“OHSU and Legacy Health will continue to promote the health and well-being of people in Oregon, Southwest Washington and beyond,” OHSU said in a statement.