Seeking Greater Scale, CareOregon, SCAN Group to Merge
CareOregon and California-based SCAN Group are combining into a nonprofit healthcare organization under the name HealthRight Group. Both managed care organizations share a focus on improving access for people traditionally underserved by the U.S. healthcare system.
At the completion of the transaction, the combined resources of CareOregon and SCAN Group’s health plan and care delivery subsidiaries, operating under the HealthRight umbrella, will have revenue of $6.8 billion and will serve nearly 800,000 health plan members through its Medicare and Medicaid managed care offerings.
“For far too long, America’s not-for-profit managed care organizations have operated at a scale disadvantage to their larger for-profit competitors. HealthRight aims to bring together two complementary organizations to benefit from greater scale, while maintaining focus on the people and communities they serve,” said Sachin Jain, M.D., M.B.A., presently CEO of SCAN, in a statement.
As part of the transaction, SCAN Group—parent company of SCAN Health Plan—will be renamed HealthRight Group. Both CareOregon and SCAN Health Plan consumer-facing brands will remain unchanged and CareOregon will maintain its separate board, community advisory councils and staffing.
Linda Rosenstock, M.D., M.P.H, will be Chair of the Board for HealthRight, and four members of the CareOregon Board, including CareOregon Board Chair, Damien Hall, will join the HealthRight Board, which will retain its current SCAN Group members. Sachin Jain, M.D., M.B.A., presently CEO of SCAN, will become the CEO of HealthRight. Eric C. Hunter will serve as President of HealthRight’s Medicaid Division and will continue in his current role as CEO and President of CareOregon.
"CareOregon and SCAN are coming together to solve the most complex challenges in our healthcare system and compete effectively as not-for-profits in a marketplace all too often dominated by companies valuing profit over mission,” said Rosenstock, in a statement.
Damien Hall, CareOregon Board Chair added, “While CareOregon and SCAN have different strengths and specialties, we are united in our commitment to providing high-quality care to the communities we serve and address healthcare disparities.”
In addition to its health plans, HealthRight will operate a diversified business unit comprising assets from both organizations including Welcome Health, a geriatric home-based primary care medical group; Housecall Providers, an in-home primary and palliative care provider; MyPlace Health, a Program of All-inclusive Care for the Elderly (PACE) entity and joint-venture between SCAN and Commonwealth Care Alliance (CCA); Healthcare in Action, a medical group for people experiencing homelessness; and HomeBase Medical, a medical group focused on improving chronic disease management and palliative care for Medicare beneficiaries. CareOregon also will create a new foundation to support improvements in the health of Oregon communities.
The transaction is expected to close in 2023 and is subject to customary closing conditions, including regulatory approvals.
