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|Articles - September 2012|
|Monday, August 27, 2012|
Page 1 of 2
BY AMANDA WALDROUPE
The state’s 13 newly forming coordinated care organizations are choosing a variety of business and tax structures, arguing for different reasons that it’s the best way to do business and provide patient-centered coordinated care.
Coordinated care organizations, or CCOs, were created by 2011 and 2012 legislation pushed by Gov. John Kitzhaber. CCOs are charged with providing higher quality health care at a cheaper rate to the state’s 650,000 Medicaid (Oregon Health Plan) patients by coordinating and integrating the patient’s medical, mental and dental health care using patient teams.
Six CCOs are limited liability companies (LLCs), four are nonprofit organizations and three are business corporations.
The legislation creating CCOs doesn’t require or favor one business structure over another. Alissa Robbins, the Oregon Health Authority’s spokeswoman, says the Oregon Health Authority certifies a CCO based upon whether it meets statutory requirements, which may be done in a for-profit or nonprofit tax structure.
Some health care organizations forming CCOs chose to keep the same business structure. Terry Coplin, CEO of Eugene-based Trillium Community Health Plan, says Trillium decided to remain a corporation to save time, as well as several million dollars in legal fees and in obtaining new contracts with providers and the federal government. “There was no real advantage to change from our current [structure],” he says.
But some groups are choosing different business structures. CareOregon, a 501c3 Portland-based managed-care organization, and Greater Oregon Behavioral Health Inc., a 501c4 managed-care organization based in The Dalles, teamed up to create the Columbia Pacific Coordinated Care Organization, which will provide care along the north Coast. That CCO is a limited liability company (LLC).
Kevin Campbell, GOBHI’s CEO, says the organizations went that route because the flexible nature of an LLC’s business structure allows the new CCO to easily maintain contractual relationships with a variety of health care providers. It also takes less time to form than becoming a nonprofit. As GOBHI and CareOregon chose the business structure, Campbell says one of the guiding thoughts was “how we create an umbrella organization that allows the broadest spectrum of community ownership.”
CCOs are under significant financial pressure. They are expected to save the state budget $239 million; a recent agreement between the state and the Centers for Medicaid and Medicare Services also requires CCOs to cut Medicaid spending by 2% in two years. At the same time, the Medicaid reimbursement rate has been cut 11% by the Legislature.
All those factors, Campbell and others say, make the requirement that LLCs pay minimal taxes advantageous. He also says that any profits will be small and will not be made in the shortterm. “I think that the concept of profit … is about the furthest thing from anybody’s mind right now,” Campbell says.
Friday, July 10, 2015
BY AMY MILSHTEIN
When gossip crosses the line.
Monday, July 13, 2015
BY SAM BLACKMAN
Storyteller-in-chief with the CEO and co-founder of Elemental Technologies.
Thursday, June 18, 2015
Fireworks are a booming industry, even if the pyrotechnics have turned July 4th into a day fire marshals, and many residents, love to hate.
Wednesday, July 15, 2015
Oregon's roads are crumbling, and revenues from state and local gas taxes are not sufficient to pay for improvements. We asked readers if the private sector should help fund transportation maintenance and repairs. Research partner CFM Strategic Communications conducted the poll of 366 readers in February.
"I feel private enterprises are capable of operating at a higher efficiency than state government."
"This has been used in Oregon since the mid-1800s. It is not a new financing method. This form of financing may help Oregon close its infrastructure deficit by leveraging funds."
Wednesday, July 15, 2015
We asked readers how Obamacare has impacted their business.
Wednesday, July 01, 2015
There are more than 10 million former military members working in the United States.
Friday, June 05, 2015
As temperatures in Oregon creep into the 90s this weekend, Oregonians' thoughts are turning to — summer baseball.
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DEDICATION PARTY: Help the Port of The Dalles celebrate its newest shovel-ready industrial land Friday, July 31, from 1:30 to 4 p.m.