Mega-corporation UnitedHealth is trying to take over the physician-owned Corvallis Clinic
Optum Oregon (UnitedHealth) wants to take over The Corvallis Clinic
The Oregon Health Authority’s Health Care Market Oversight (HCMO) program has delayed the preliminary review of the Optum Oregon (a UnitedHealth subsidiary) and The Corvallis Clinic merger to March 8.
Hundreds of community members submitted comments, which were overwhelmingly opposed to the merger. Community members made their voices heard: They do not want UnitedHealth taking over The Corvallis Clinic without rigorous scrutiny.
The Community is speaking out, and believes that health care decisions should be made locally, by people in their community. UnitedHealth has a history of increasing costs to patients while reducing the quality of care.
While many people are disappointed in the delay, we remain hopeful that this is additional time means additional scrutiny of the many promises made by Optum/UnitedHealth in justifying the takeover.
➡️ Key Points
Community members’ objections include the following concerns:
Corporate Interests vs. Public Health: Optum Oregon MSO is owned by UnitedHealth Group Inc., the largest healthcare corporation in the US. Its primary responsibility is to its shareholders, focusing on maximizing profits. This business model requires prioritizing financial gains over patient welfare.
Impact on Local Healthcare: UnitedHealth's record as the 10th largest corporation in the nation underscores its efficiency in generating profits. However, this comes at the cost of patient care. The takeover of The Corvallis Clinic by such a corporation will lead to increased costs and reduced quality of care for Oregonians.
Affordability and Accessibility Concerns: The introduction of a mega-corporation like UnitedHealth in to our local healthcare landscape raises serious concerns about the affordability and accessibility of healthcare services. Experience and history proves that corporate takeovers lead to increased costs without improving quality of care.
Distrust in Corporate Promises: The statements provided by Optum Oregon MSO in their application are refuted by historical evidence. Corporate takeovers of healthcare, particularly by UnitedHealth, have not benefited public health as promised.
⬇️ Keeping reading for more details ⬇️
➡️ Who they are:
Optum Oregon MOS is owned by UnitedHealth Group Inc, the largest health care corporation in the US. UnitedHealth has a long history of driving up costs in the name of profit and has been the subject of a lot of controversy, nationwide, over the last decade.
The Corvallis Clinic is a physician owned and operated provider who operates 11 clinics serving Albany, Corvallis, Lebanon, Lincoln City, Newport, and Philomath. They provide primary care, behavioral health, occupational medicine, audiology, optometry, radiology, laboratory services, telemedicine, physical therapy, an ambulatory surgery center, and more.
➡️ What Optum (owned by mega-corporation UnitedHealth) wants to do:
UnitedHealth, under the name Optum Oregon MSO, is attempting to take over The Corvallis Clinic.
The Oregon Health Authority can approve or deny the takeover, or conduct a comprehensive review.
➡️ What is HCMO?
The Health Care Market Oversight program is a newer law designed to provide oversight and community involvement in certain health care market transactions, like mergers, acquisitions and closures.
HCMO was established by HB 2362, which the Oregon Legislature passed in 2021. This mandate requires the Oregon Health Authority (OHA) to review and approve proposed material change transactions between health care entities,
The Health Care Market Oversight (HCMO) program exists to make sure that health care entity transactions support:
Health equity
Lower costs for consumers and payers,
Increased access, and
Better patient care
HCMO has the authority to deny or approve these requests outright. They also have the power to provide additional opportunities for feedback and community decision making through a comprehensive review process, including a Community Review Board. If a comprehensive review were done in this case, such a board would be composed of Mid-Valley residents to provide guidance and testimony on this proposed merger. A community Review Board would also lend much needed transparency to this proposal.
➡️ What is a Comprehensive Review and a Community Review Board?
HCMO has the authority to convene a Community Review Board, in support of HCMO’s goal to “Implement a process that is transparent, robust and informed by the public, including the local community, through meaningful engagement.” (OAR 409-070-0000)
The law (ORS 415.500 et seq) requires HCMO to conduct a comprehensive review before it can approve a transaction that has potential to have a negative impact on access to affordable health care in Oregon (ORS 415.501(7)(a)). HCMO may convene a Community Review Board if certain criteria are met, including:
The potential loss or change in access to essential services.
The potential to impact a large number of residents in this state.
A significant change in the market share of an entity involved in the transaction.
There can be no doubt that the Optum/UnitedHealth takeover has potential to negatively impact access to affordable care so that it requires a comprehensive review (or outright denial), and that the criteria for convening a Community Review Board are met.
➡️ Why it matters
The Corvallis Clinic injects more than $41 million into the economy every year. Local residents deserve to have a say in the future of their health care in their community.
Sign the petition and then send an email to HCMO today and urge them to convene a Community Review Board NOW.
We believe that patients are the most important element of a health care clinic or facility. Patients should have a voice in what happens in their community on issues that affect their health.
History tells us that costs will rise in the Mid Valley if this proposal is approved. Multiple research studies have proven this. The publicly traded for profit model adds a minimum of 8-10% profit margin and a 10-20% marketing budget. It relies on a variety of accounting and other financial strategies to impress investors.
More about Optum and UnitedHealth:
Optum/UnitedHealth controls close to 100,000 clinicians across the United States.
They are the largest health insurance company in America, and the largest Fortune 500 company in the health care sector.
Their profit focused model views patients as a revenue source. It accomplishes this primarily by selecting healthy patients via targeted advertising, leveraging other health providers in the community to discount prices and outsourcing a variety of services to cheaper labor markets. New technologies are emphasized but often they are best used to maximize reimbursement through a variety of clever billing schemes. United Health is currently being scrutinized by the Federal government for these strategies in its Medicare Advantage plans.
Of most concern in Oregon is the impact on health equity, quality and cost this for profit strategy would have. Sadly the key to health insurance success remains selection---selection of healthy patients and healthy communities. Research suggests that the major reason for success in for profit health care is to avoid sicker patients and communities and there are a variety of strategies using sophisticated data approaches to do so. Quality looks great because the sicker folks are taken care of somewhere else.
Mid Valley patients and community members deserve a chance to understand and process what is going on in their community and to their health care.
What history & the evidence says
Optum’s application materials make all sorts of wonderful claims. Mergers and acquisitions always make those claims, but history proves them to wrong, time and time again. Expert testimony, numerous studies, and reports all agree: These types of mergers and acquisitions increase costs without improving patient care.
➡️ Expert Testimony
Katherine Gudiksen, University of California at San Francisco College of Law, testified to the Oregon Senate Committee on Health Care in November 2023. She asserted that medical mergers and acquisitions are the leading cause of increasing healthcare costs in the US: Click here to read
David Baden, Acting Director of the Oregon Health Authority, in testimony to the Oregon Senate Committee on Health Care in November 2023, affirmed Ms Gudiksen’s assertions in his presention to the Committee. Click here to read
Margin Gaynor, Professor of Economics and Health Policy at Carnegie Mellon University, gave a statement to the US House of Representatives Committee on Energy and Commerce Oversight and Investigations Subcommittee, stating that consolidation leads to increased costs and reduced quality of care. Click here to read
➡️ Studies, Research, and Reports
“Changes in Quality of Care after Hospital Mergers and Acquisitions” New England Journal of Medicine, January 2020. This is the famous Harvard study showing worse patient experiences after health care mergers. Click here to read
“The impact of hospital consolidation” Princeton, NJ: Robert Wood Johnson Foundation, June 2012. This study shows that consolidation has not lead to either improved quality of care or reduced costs. Click here to read
“The industrial Organization of Health-Care Markets” Journal of Economic Literature, June 2015. Click here to read
“The Price Ain’t Right? Hospital Prices and Health Spending on the Privately Insured” The Quarterly Journal of Economics, February 2019. Click here to read
“Estimation and Identification of Merger Effects: An Application to Hospital Mergers” The Journal of Law and Economics, August 2009. Click here to read
"Is Health-Care M&A Hurting Patients?" Chicago Booth Review, August 2022. This study suggests mergers can lead to higher hospitalization and mortality rates. Click here to read
“The Harms of Hospital Mergers and How to Stop Them” American Economic Liberties Project, April 2023. This report delves into the negative effects of hospital mergers, including reduced competition, higher prices, and decreased healthcare access for vulnerable communities. Click here to read
➡️ Some articles about UnitedHealth
Here is just a small glimpse in to the bad actions, fraud, and controversies of UnitedHealth. There is much too much to list them all.
UnitedHealth sued by US Labor Department over 'thousands' of claims denials
UnitedHealth faces class action lawsuit over algorithmic care denials in Medicare Advantage plans
Insider UnitedHealth’s Effort to Deny Coverage for a Patient’s Care
UnitedHealthcare is paying $15.6 million to settle mental health overcharge accusations
Louisiana sues UnitedHealthcare, OptumRx for alleged Medicaid drug overcharging
UnitedHealthcare Pays $91.2M After Underpaying Envision for Medical Care
UnitedHealthcare loses legal battle against KKR-owned doctors group
UnitedHealth used secret rules to restrict rehab care for seriously ill Medicare Advantage patients
➡️ Click here to view the petition that was submitted to HCMO