By Taxpayers Association of Oregon Foundation,
In 2023, both Legacy Health and Oregon Health & Science University (OHSU) announced the intent to merge, which at the time of the announcement of the merger would have “more than 32,000 employees and 100-plus locations, including 10 hospitals, and more than 3 million patient visits a year”. However, the merge was not meant to be. Today, on March 5th, 2025, in a joint statement, Oregon’s two great health giants announced they mutually terminated the merger. The key reason cited in the joint statement was “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.”
Likely factors that caused the two prominent health providers to is likely due to OHSU funding is not stable anymore, as a report from the Willamette Week cited that OHSU is struggling with its finances and operations, and is at risk of cutting 75% of its research due to decrease support from state and federal government. It was also a key reason for OHSU seeking to merge with Legacy, as in another article from Willamette Week, “Simply put, Legacy Health must find a strategic partner to achieve financial sustainability,” in a regulatory filing in which S&P Global Ratings gave Legacy an A with a stable outlook.
As the two organizations part ways, a significant question for OHSU is how it will survive and whether the break-off of the merger will result in layoffs at Oregon’s most prominent research hospital.
