Oregon Health and Science University is re-evaluating its relationship with the troubled health insurance company Moda Health.
OHSU is stopping most new hires. Over the last few years, it's hired an average of about 500 people a year.
Courtesy Veteran's Affairs
The state says Moda doesn’t have enough money to continue operating.
The company attracted thousands of new customers when the new Affordable Care Act marketplaces opened in 2014, mainly by offering low cost plans.
But those new customers proved to be sicker and older than expected.
In an email, Moda CEO Robert Gootee said the cost of providing care has put an unprecedented financial strain upon the health plan.
OHSU loaned Moda $50 million in 2014 in the hope of having a stake in the new marketplace. But now, the research hospital said it is concerned about Moda’s financial performance and estimates its $50 million stake is now worth only $33 million.
But OHSU also said it is still committed to building a health care system that includes hospitals, provider groups and payers.