BEND, OR -- St. Charles Health System and The Center remain in a holding pattern, after the Oregon Health Authority denied a request to fast-track their integration plan. A bill passed by the 2021 legislature requires the OHA to approve such deals, but St. Charles CEO Dr. Steve Gordon says it was intended to protect consumers against large corporate take-overs, "I think this is the kind of situation that should call into question an unintended consequence of a far-reaching act of legislation, and whether just a fresh re-evaluation might be wise." He says it's the first time the "fast-track" exemption has been tested.
Dr. Gordon tells KBND News, "Legislation that was intended to deal with very large corporate entities is now being applied to a situation where regular citizens are at risk. Even though the legislation was intended to protect consumers." He says the deal is necessary to shore up orthopedic services in Central Oregon. According to St. Charles, a typical orthopedic patient needing joint replacement, currently waits six months for the initial consultation and another six months for surgery. "We have a lot of folks frustrated with how long it already takes to get an appointment," says Gordon, "And that's not going to be solved overnight. We have a growing population. We have a desire to grow and support the need. But first we need to stabilize services, and then we need to work with our colleagues to recruit and to grow. So, it may take some time to really work all this out and I ask for folks' patience, particularly since we can't get to the starting line until we get approval from the state."
It's unclear how long the transaction will now take. "We are working constructively with the Health Authority, as we always do. It's hard to tell, It will definitely be at least several weeks; it could be months. It's really up to the authority as the regulatory body," says Gordon, "What we do know is their conventional review asks for at least six months to conduct that review prior to the targeted transaction date. That sounds too long from our perspective, but we just don't know quite yet, right now."
He tells KBND News market conditions just aren't sustainable for The Center to continue as an independent company. The Center has previously said finances are not strong enough to maintain current service levels. If the transaction is approved, Dr. Gordon says St. Charles intends to employ the majority of The Center's staff and recreate the same services.
