An extended, acrimonious authorized battle between state Medicaid contractor FamilyCare Inc. and the Oregon Well being Authority has ended with the state agreeing to pay $22.5 million to the corporate.
FamilyCare has agreed to donate that cash to a medical faculty in Lebanon, Oregon. The Oregonian/OregonLive reported. It was a Pyrrhic victory for FamilyCare’s founder and CEO Jeff Heatherington. The corporate has shrunk from 370 staff to 4.
“Nothing will change the truth that we had the corporate going and we had 370 of the best individuals I’ve ever labored with,” Heatherington stated.
In 1989, the state created the Oregon Well being Plan, an formidable try and reform the healthcare system. The hassle known as for coordinated care organizations to be shaped to manage the Medicaid system at a neighborhood degree.
FamilyCare was certainly one of two such organizations within the metro space.
The corporate clashed with the well being authority repeatedly over charges, saying the state allowed the opposite metro-area CCO to cost greater than FamilyCare.
The state claimed Well being Share deserved to be paid extra as a result of its clients tended to be poorer and sicker. FamilyCare sued in 2017.
The Oregon Well being Authority admitted no wrongdoing within the settlement.
Oregon Well being Authority Director Patrick Allen stated, “I’m glad we might resolve these proceedings with an settlement that invests in the way forward for Oregon’s healthcare workforce and strengthens our healthcare system.”