A controversial merger between CareOregon, the state's largest Medicaid insurer, and California's SCAN Group will not happen. The agreement, announced in 2022, drew criticism from an independent oversight committee and some of the architects of the state's innovative Medicaid program, the Oregon Health Plan, including Dr. John Santa and former Gov. John Kitzhaver. faced. Public comments also raised warning flags.
The deal was pending before Oregon regulators, but this afternoon CareOregon CEO Dr. Eric Hunter sent an email to staff saying the deal had been halted.
Hunter's message is:
Both CareOregon and SCAN are deeply committed to preserving and protecting nonprofit, community-based health care. When we embarked on the journey of founding HealthRight Group, we did so with the belief that the state would recognize it as an opportunity to uphold these values. Despite our best efforts, key stakeholders continue to express concerns about our proposals.
CareOregon and SCAN are pleased to announce that we have jointly decided to terminate our proposed merger and have officially withdrawn our application from Oregon's regulatory review process.
The Board of Directors and I share our disappointment, and we recognize that many of you feel the same way. We know that some of you have worked hard to advance HealthRight Group's efforts. Thank you for your dedication and hard work.
We also understand that all CareOregon employees have been affected in some way by this potential combination and understand that you may be disappointed by this outcome.
Thank you for your continued commitment to CareOregon. If you have any questions or concerns, please feel free to contact us.
