Optum, parent company of ASC chain SCA Health, received approval to bypass a state review of its planned purchase of physician-owned Corvallis (Ore.) Clinic, the Oregon Health Authority said March 13.
"Absent closure of the transaction as expeditiously as possible, the Corvallis Clinic is expected to be insolvent in the immediate term," the report said. "The information provided to date reflects that the proposed transaction is necessary to protect the interest of consumers and preserve TCC's solvency."
An emergency application was filed March 7 so the clinic "can continue serving their patients and communities with the care they need. As outlined in numerous filings and discussions with the state since December 2023, the Corvallis Clinic has significant longstanding financial issues that have come to a head, necessitating this emergency filing," a spokesperson for Optum told Becker's on March 12.
Because of a lack of cash stability, the clinic did not have time to undergo more regulatory review without more cost-cutting measures that would impact care, Corvallis Clinic's attorneys said, and could have been forced to close.
The Optum spokesperson said the clinic's financial issues existed before the cyberattack on Optum's Change Healthcare in late February. However, because Corvallis Clinic uses Change to process medical claims, the organization has been left lower on funds following the attack, The American Prospect reported March 10.
When Optum first applied to acquire the clinic, it was expected to experience financial losses in the next 12 months and projected the financial losses would push clinicians to seek employment elsewhere.
"Optum is committed to The Corvallis Clinic's success by supporting their clinicians, staff and the patients and communities they serve with new resources and tools that will help provide long-term sustainability," an Optum spokesperson told Becker's on March 15. "The Corvallis Clinic will continue to deliver high-quality care to patients, supported by the additional capabilities of Optum, allowing The Corvallis Clinic to deepen its ability to care for the health and well-being of patients and communities through team- and value-based care."
Optum has seen soaring growth in the last year, adding nearly 20,000 physicians in 2023 and inking deals with physician groups, hospitals and even Uber. The group's growth is "raising antitrust and noncompete concerns as more payers and private equity firms pursue medical practice acquisitions," according to a December report from Medscape.