SCAN Group and CareOregon Announce Intent to Combine As HealthRight Group, a National Mission-Driven Healthcare Organization
Date Posted: 12/14/2022
HealthRight Group will bring together two renowned organizations to become a not-for-profit leader in service of Medicare and Medicaid beneficiaries
Dec. 14, 2022– Oregon-based CareOregon and California-based SCAN Group (SCAN) announced today that they have entered into a definitive agreement to combine as a mission-driven not-for-profit healthcare organization under the name HealthRight Group. HealthRight will bring together the expertise and resources of two nationally renowned organizations to improve access for people traditionally underserved by the US healthcare system.
Members and patients of both organizations will continue to receive the same quality services without disruption, in line with HealthRight’s focus on the communities it serves.
As part of the transaction, SCAN Group—parent company of SCAN Health Plan—will be renamed HealthRight Group. Both CareOregon and SCAN Health Plan consumer-facing brands will remain unchanged and CareOregon will maintain its separate board, community advisory councils and staffing.
Dr. Linda Rosenstock will be Chair of the Board for HealthRight, and four members of the CareOregon Board, including CareOregon Board Chair, Damien Hall, will join the HealthRight Board, which will retain its current SCAN Group members. Dr. Sachin Jain, presently CEO of SCAN, will become the CEO of HealthRight. Eric C. Hunter will serve as President of HealthRight’s Medicaid Division and will continue in his current role as CEO and President of CareOregon.
At the completion of this transaction, the combined resources of CareOregon and SCAN Group’s health plan and care delivery subsidiaries, operating under the HealthRight umbrella, will have revenues of $6.8B, and will serve nearly 800,000 health plan members through its Medicare and Medicaid managed care offerings.
“CareOregon and SCAN are coming together to solve the most complex challenges in our healthcare system and compete effectively as not-for-profits in a marketplace all too often dominated by companies valuing profit over mission,” said Dr. Linda Rosenstock, SCAN Group Board Chair.
Damien Hall, CareOregon Board Chair added, “While CareOregon and SCAN have different strengths and specialties, we are united in our commitment to providing high quality care to the communities we serve and addressing healthcare disparities.”
“For far too long, America’s not-for-profit managed care organizations have operated at a scale disadvantage to their larger for-profit competitors. HealthRight aims to bring together two complementary organizations to benefit from greater scale, while maintaining focus on the people and communities they serve,” remarked Dr. Sachin Jain, SCAN Group CEO.
“What makes this process so unique is that it is additive. We are coming together as community-based healthcare organizations that are driven by local community needs, and we’re building on that,” said Eric C. Hunter, CareOregon President and CEO.
In addition to its health plans, HealthRight will operate a diversified business unit comprising assets from both organizations including Welcome Health, a geriatric home-based primary care medical group; Housecall Providers, an in-home primary and palliative care provider; MyPlace Health, a Program of All-inclusive Care for the Elderly (PACE) entity and joint-venture between SCAN and Commonwealth Care Alliance (CCA); Healthcare in Action, a medical group for people experiencing homelessness; and HomeBase Medical, a medical group focused on improving chronic disease management and palliative care for Medicare beneficiaries. Additionally, in demonstration of its deep commitment to community, CareOregon will create a new foundation to support improvements in the health of Oregon communities.
The transaction is expected to close in 2023 and is subject to customary closing conditions, including regulatory approvals.
About SCAN Group
SCAN Group is a mission-driven organization that is tackling some of the biggest issues in healthcare for older adults, including chronic illness, access to care, homelessness, inequities and loneliness. SCAN Health Plan, which is part of SCAN Group, is one of the nation’s foremost not-for-profit Medicare Advantage plans, serving more than 270,000 members in California, Arizona and Nevada, and is expanding operations to Texas in 2023. Independence at Home, a SCAN Health Plan community service, provides vitally needed services and support to seniors and their caregivers. Since 2020, SCAN has launched three mission-aligned medical groups, including Healthcare in Action, Welcome Health, and MyPlace Health (a joint venture with CCA), each of which focuses on meeting the needs of older adults. Additionally, in 2022 SCAN acquired The Residentialist Group, now known as HomeBase Medical, to support chronic disease management and palliative care for older adults in the home. To learn more, visit www.scanhealthplan.com or follow SCAN on Twitter @scanhealthplan.
For more than 25 years, CareOregon has offered health services and community benefit programs to Oregon Health Plan members. Today, CareOregon supports the needs of more than 500,000 Oregonians through three coordinated care organizations, a Medicare Advantage plan, a Tribal Care Coordination program, a dental care organization, and in-home medical care with Housecall Providers. CareOregon members have access to integrated physical, dental and mental health care, and substance use treatment. We believe that good health requires more than clinics and hospitals, so we also connect members to housing, fresh food, education and transportation services. CareOregon is a mission-driven, community-based nonprofit with offices in Portland, Medford and Seaside, Oregon.
SCAN Group and CareOregon logos, leadership headshots and bios are available here.