Legacy Health to Consolidate Portland-Area Clinics, Citing Financial Challenges
Portland, OR – Legacy Health announced October 18, 2024, it will close several primary and specialty care clinics across the Portland metropolitan area in the coming months, impacting patient access and prompting concerns about healthcare consolidation.The closures are a direct response to ongoing financial pressures facing the non-profit health system.
The move affects approximately 150,000 patients who receive care at the impacted locations. Legacy Health,one of Oregon’s largest healthcare providers,attributes the decision to rising operational costs,declining reimbursement rates,and the lingering effects of the COVID-19 pandemic. The closures are part of a broader strategic plan to streamline operations and focus resources on core services, including acute and trauma care.Patients are being notified and assisted in finding choice care providers within the Legacy network and the wider Portland area.
Specifically, Legacy will close the Beaverton Family Medicine Clinic, the East Portland Medical Clinic, the Gresham Family Medicine Clinic, and the Sellwood medical Clinic. Specialty services offered at these locations will be consolidated into other Legacy facilities. The closures will occur in phases, beginning in December 2024 and concluding by march 2025.
“This was an incredibly arduous decision, but a necessary one to ensure the long-term financial health of Legacy Health,” said Dr.Ajay Gupta,Legacy’s Chief Medical Officer,in a prepared statement. “We understand the disruption this will cause for our patients, and we are committed to making this transition as smooth as possible.”
Legacy Health reported an operating loss of $144.8 million for the fiscal year ending June 30, 2024, according to financial documents. The system has been actively pursuing cost-cutting measures, including workforce reductions and service line adjustments, over the past year.The closures represent a meaningful escalation of those efforts.
The Oregon Health Authority has stated it is monitoring the situation and working with Legacy Health to mitigate the impact on patients, particularly those with limited access to transportation or specialized care. Community advocacy groups have expressed concerns about the potential for increased health disparities as an inevitable result of the clinic closures.
