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Effective URL: https://www.modernhealthcare.com/medicaid/oregon-pay-225m-settle-medicaid-contractor-dispute
Submission: On March 28 via api from CH — Scanned from DE
Effective URL: https://www.modernhealthcare.com/medicaid/oregon-pay-225m-settle-medicaid-contractor-dispute
Submission: On March 28 via api from CH — Scanned from DE
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Home 2. Medicaid March 27, 2022 11:26 AM OREGON TO PAY $22.5M TO SETTLE MEDICAID CONTRACTOR DISPUTE Associated Press * Tweet * Share * Share * Email * More Reprints Print MH Illustration / Getty Images A long, acrimonious legal battle between state Medicaid contractor FamilyCare Inc. and the Oregon Health Authority has ended with the state agreeing to pay $22.5 million to the company. FamilyCare has agreed to donate that money to a medical school in Lebanon, Oregon. The Oregonian/OregonLive reported. It was a Pyrrhic victory for FamilyCare’s founder and CEO Jeff Heatherington. The company has shrunk from 370 employees to four. “Nothing will change the fact that we had the company going and we had 370 of the finest people I have ever worked with,” Heatherington said. In 1989, the state created the Oregon Health Plan, an ambitious attempt to reform the healthcare system. The effort called for coordinated care organizations to be formed to administer the Medicaid system at a local level. FamilyCare was one of two such organizations in the metro area. The company clashed with the health authority repeatedly over rates, saying the state allowed the other metro-area CCO to charge more than FamilyCare. The state claimed Health Share deserved to be paid more because its customers tended to be poorer and sicker. FamilyCare sued in 2017. The Oregon Health Authority admitted no wrongdoing in the settlement. Oregon Health Authority Director Patrick Allen said, “I am glad we could resolve these proceedings with an agreement that invests in the future of Oregon’s healthcare workforce and strengthens our healthcare system." Letter to the Editor Send us a letter Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print. Recommended for You Senators ask GAO to examine Medicaid’s low COVID vaccination rates Arizona to resume disenrolling people from Medicaid program Sponsored Content DAILY DOSE NEWSLETTER: SIGN UP TO RECEIVE A LATE AFTERNOON WEEKDAY ROUNDUP OF THAT DAY’S BREAKING NEWS AND DEVELOPMENTS IN HEALTHCARE. Email Address Get Newsletters Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox. Email Address Subscribe Today MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing. Subscribe Connect with Us * LinkedIn * Twitter * Facebook * RSS * Instagram Our Mission Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data. 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