A letter to our community
Legacy Health and Regence Reopen Discussions
April 9, 2026
By Merrin Permut, Vice President & Chief Population Health Officer
I am pleased to report that contract discussions with Regence have resumed. We are focused on having productive discussions with Regence while also keeping you – our patients, partners and community – informed every step of the way.
It’s important to understand that this situation is not just about one contract with one insurance company. As we are all keenly aware, Oregon’s healthcare system is struggling to adapt to rising operational costs, increased utilization (especially since COVID), reduced federal funding, workforce shortages and inflation.
Oregon’s healthcare industry is a connected system made up of hospitals, providers, insurance companies, legislative policy makers and, most importantly, Oregonians who need and benefit from a robust healthcare system that prioritizes patient care and wellness.
While we are all struggling to bend the cost trend, we must work together to find ways to reduce the impact to Oregonians and maintain our healthcare system as best as possible. That means understanding there is no perfect solution, and we must collaborate to achieve a positive outcome.
Legacy has experienced a 47% increase in operating costs from 2021-2025. Current Regence reimbursement rates do not cover current costs of care. We’re asking for a reasonable increase over the next two years to help narrow the gap between cost of patient care and their current reimbursement of it.
On March 31, we submitted a proposal to Regence. They have not responded with a new offer, which has stalled progress. We are returning to the table and would like to quickly reach a resolution that ensures patients can access the care they need.
Legacy has a 150-year history of serving Oregonians’ healthcare needs, and we want to continue to do so. Our goal is to work collaboratively with Regence and others to maintain access, ensure continuity of care, manage costs and keep Oregonians and our entire healthcare system in mind.
Thank you for your support and concern for the wellbeing of your fellow Oregonians. We also encourage patients and community members to access resources and share their experiences directly with Regence. Your voice matters.
Merrin Permut, MHA
Vice President and Chief Population Health Officer
Legacy Health