LANE COUNTY, Ore. — With Governor Tina Kotek entering the PeaceHealth Oregon, ApolloMD conversation, it’s unclear if the two entities will delay the transition of emergency department staffing groups as requested by the governor to undergo an Oregon Health Authority Health Care Market Oversight review.
On June 1 and July 1, PeaceHealth Oregon will switch to ApolloMD, based in Atlanta, to staff its emergency departments at its Lane County locations; opting to end its contract with Eugene Emergency Physicians (EEP) after more than three decades.
In a letter to PeaceHealth and ApolloMD Wednesday, several state legislators asked for a state review to assess the impact of the major health care partnership.
Governor Kotek expressed her frustrations with PeaceHealth in a separate letter for what she called a lack of transparency concerning the coming emergency department changes which she fears would leave hospitals understaffed.
Kotek said PeaceHealth’s current approach could undermine the trust and it commitment to transparency.
Governor Kotek said, quote, “I am also worried that the sporadic and in-development nature of administrative agreements between ApolloMD, Lane Emergency Physicians, and PeaceHealth will result in serious disruption and deterioration of ED services at PeaceHealth locations. I am therefore requesting a delay of your planned transition, at minimum to allow for another 180 days to ensure adequate staffing with providers who reside in and are committed to the community and to allow more time to develop public understanding and to restore trust.”
Some state officials support the governor’s request that PeaceHealth continue to work with Eugene Emergency Physicians to extend their contract and retain adequate staffing in support of an immediate delay.
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“The governor is doing the right thing. The governor sees that the legislators, specifically Lane County legislators, are concerned about this,” State Sen. James Manning, Jr. said.
“It just shows the seriousness of what we’re dealing with. If this turned out to be a poor decision and one that would be putting the individuals who needed this type of life care at risk, it could in fact jeopardize the license that PeaceHealth RiverBend operates under as they trauma two medical facility,” State Sen. Floyd Prozanski said.
PeaceHealth said in a statement Wednesday it would respond promptly to the questions raised in the letters sent by lawmakers, provide updates as the transition progresses, and comply with any requested Oregon Health Authority review.
Though ApolloMD said Thursday that Lane Emergency Physicians, LLC is already compliant with an Oregon law limiting management services organizations and private equity control over medical practices, it hasn’t said yet whether it and PeaceHealth will undergo the requested Oregon Health Authority review.
ApolloMD tells us clinicians at Lane Emergency Physicians will retain all clinical decision making, and ApolloMD Business Services retains a fixed management fee not tied to revenue generated through the arrangement with PeaceHealth.
Kotek’s office it’s monitoring temporary clinical staff service dates and new license applications to ensure there’s enough physicians for PeaceHealth to maintain current physician ratios.
In a statement, ApolloMD provided reassurance for staffing numbers saying, “This is not our first time providing support for an emergency department. With 43 years of experience, our team understands the complexity of modern healthcare and has developed strategies to ensure communities receive quality healthcare to meet their growing needs.”
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The company says it currently staffs 17 trauma designated emergency departments in the United States.
When asked will there be incentives tied to volume, staffing levels, or billing intensity, the company said, “Lane Emergency Physicians is focused on delivering care to the community. As a result, we want to incentivize our physicians based on the quality and depth of the care they provide patients.”
Another ask from the governor — that the hospital release the request for proposal (RFP) used during its search for a new ED staffing contract to the public by Friday, March 20 along with issuing an update to OHA by this time.
Kotek asked that if proposals cannot be shared due to non-disclosure agreements, that PeaceHealth release the RFP scoring criteria and the scores given to the applicants.