Sponsored by Lane Powell

Structures vary for CCOs

| Print |  Email
Articles - September 2012
Monday, August 27, 2012

 

BY AMANDA WALDROUPE

0912 Dispatches CoordinatedCareOrgsThe 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.



 

Comments   

 
Guest
0 #1 Martha Perez, General Political ActivistGuest 2012-09-07 19:42:47
I understand, and agree that it is good to try different business organizational structuring, just in case we do not want to put all of our eggs in one basket, at this time. Regardless of how we choose to structure our investments, it is important that the mission, and vision, for a healthier Oregon, ultimately be the nexus that binds us together.
Quote | Report to administrator
 

More Articles

Nuclear fingerprints

March 2015
Tuesday, February 24, 2015
BY LINDA BAKER | OB EDITOR

At Oregon State University, a 21st century version of the bad dream — nuclear terrorism — is alive and well. This winter, the Department of Nuclear Physics and Radiation Health Physics created a new interdisciplinary graduate emphasis in nuclear forensics, a Sherlock Holmes-sounding program that aims to identify how and where confiscated nuclear and radiological materials were created.


Read more...

How a Utah-based essential oils company cornered the Oregon market

March 2015
Friday, February 20, 2015
BY AMY MILSHTEIN | OB CONTRIBUTOR

Multilevel marketing, health claims and zyto scanner biofeedback machines: How dōTERRA thrives in Oregon. 


Read more...

How Oregon will survive the loss of Hanjin

March 2015
Friday, February 20, 2015
BY JOE CORTRIGHT | OB CONTRIBUTOR

"Shipping containers to Portland is like waiting for a bus that travels once a day."


Read more...

Chronicling Gov. Kitzhaber's march to resignation

The Latest
Wednesday, February 11, 2015
021115-kitzhaber-jekaplan14-thumbBY JACOB PALMER | OB DIGITAL NEWS EDITOR

Recapping a wild week featuring plenty of will he or won't he resign drama.


Read more...

VIDEO: The 2015 100 Best Companies to Work For in Oregon

The Latest
Friday, February 27, 2015

videothumbVIDEO: 2015 100 Best Companies to work for in Oregon


Read more...

Live, Work, Play: Amen Teter

February 2015
Tuesday, January 27, 2015
BY JACOB PALMER

Catching up with Amen Teter, Portland-based global director of action sports for Octagon Olympics & Action sports talent agency.


Read more...

Game On

March 2015
Wednesday, February 25, 2015
BY LINDA BAKER | OB EDITOR

The big news at Oregon Business is we’re getting a ping pong table. After reading the descriptions of the 2015 100 Best Companies to Work For in Oregon, a disproportionate number of which feature table tennis in the office, I decided it was time to bring our own workplace into the 21st century. It was a tough call, but it’s lonely at the top, and someone has to make the hard decisions.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS