December 12, 2024 (Portland, Ore.) - The Oregon Nurses Association (ONA) sent a letter to the Oregon Health Authority asking them to intervene in the recently proposed joint venture between Providence Health and private equity-backed Compassus to manage Providence’s home health and hospice program. The full letter is included below. Providence announced the so-called joint venture in October but has failed to file the proper paperwork with Oregon’s Healthcare Market Oversight (HCMO) to allow state regulators time to review the sale. 

Concerns from patients and caregivers have already been raised about transparency, patient care, and the potential negative effects on health outcomes in Oregon’s vulnerable communities with this joint venture. “Many of our patients are very ill or in the last stages of life, and they deserve the best care possible. I have serious concerns for my patients and their families with this so-called joint venture,” said Kara Hayden, an Augmentative and Alternative Communication Speech Language Pathologist with Providence Home Health and Hospice. “I don’t want to spend my time trying to drive up profits for out-of-state investors. I want to spend my time providing the best care possible for my patients. The fact that they are trying to sidestep Oregon’s regulatory requirements raises serious red flags for me.” 

The HCMO process was established to ensure that health care collaborations and mergers do not undermine the quality or accessibility of services. It requires companies like Providence to be fully transparent and provides the opportunity for scrutiny from state regulators. Providence sidestepping the HCMO review process for their new joint venture with Compassus, raises critical questions regarding their commitment to high-quality patient care, transparency, and the interest of their patients. 

“Our primary concern is our patients and the integrity of home healthcare in Oregon,” continued Hayden. “Bypassing the necessary regulatory oversight when partnering with private equity tells me that Providence is prioritizing profits over patient well-being. This isn’t surprising coming from Providence, but I hope the OHA holds Providence accountable, so this sale does not compromise the health and safety of our patients and their families.” 

In the letter to OHA the ONA asserts that the Providence and Compassus joint venture should be subject to the scrutiny of HCMO as defined in statute. The letter details how Providence set up multiple LLCs at the time of their announcement of the joint venture to transfer ownership of their home health program. Providence has also acknowledged to ONA members that there will be a reduction in pediatric homecare services. 

The OHA’s oversight of mergers, acquisitions, and joint ventures involving health care entities is crucial to maintaining quality and accessibility of care for Oregonians. Given the magnitude of the joint venture between Providence and Compassus, it is essential that this collaboration undergo the appropriate regulatory review to determine its impact on communities throughout Oregon.