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Planned Parenthood Affiliates Merge as Southern Oregon Clinics Face Financial Strain
Oregon's two Planned Parenthood affiliates will consolidate into a single statewide organization, with the smaller Southwestern Oregon affiliate dissolving and transferring its three remaining clinics to Columbia Willamette. The move comes amid mounting financial pressures, Medicaid reimbursement shortfalls, and political attacks on reproductive healthcare access.
Oregon's two Planned Parenthood affiliates announced plans to consolidate into a single statewide operation, a decision that will dissolve the smaller Southwestern Oregon affiliate and transfer its three remaining clinics to Planned Parenthood Columbia Willamette.
The boards of both organizations approved the merger after years of discussion. Planned Parenthood of Southwestern Oregon, which has provided reproductive healthcare in Eugene and the Rogue Valley for six decades, will end operations and lay off its entire 75-person staff effective Feb. 12. The affiliate's board voted unanimously for the plan.
The organization has been under financial pressure, closing clinics in Grants Pass and Ashland in recent years. Its three remaining clinics in Eugene, Springfield and Medford will transfer to Planned Parenthood Columbia Willamette, which operates nine clinics in the Portland metro area, Salem, Bend and Ontario with an annual budget of roughly $40 million.
On Feb. 14, the combined organization will relaunch as Planned Parenthood of Oregon and Southwest Washington.
"We're doing everything in our power to keep our doors open, and this is definitely the best move to keep patient care constant in southwestern Oregon," said Amy Handler, president and CEO of Planned Parenthood of Southwestern Oregon.
Dr. Sara Kennedy, president and CEO of Planned Parenthood Columbia Willamette, said a single statewide organization will have the capital and technology to operate more efficiently.
"The North star is really maintaining and expanding reproductive healthcare access for all of Oregon and especially for Southern Oregon," Kennedy said.
Both affiliates provide STI diagnosis and treatment, contraception, well-person care and gender-affirming care, among other services. Abortion services account for about 10% of overall visits, Kennedy said. The clinics primarily serve patients covered by Medicaid or who pay out of pocket.
Kennedy said the Eugene, Springfield and Medford clinics will remain open and continue providing a full range of services during and after the transition, with no interruption in care. Medical records, appointments, insurance coverage and billing relationships will not change. She hopes to expand hours at those locations from four days a week to six, consistent with other parts of the state.
Handler said her organization has faced the same challenges as any small rural health nonprofit, compounded by political pressure tied to the Planned Parenthood name. Last year, Republicans targeted the organization in HR 1, President Trump's tax and spending bill, barring it for one year from billing Medicaid for services including birth control, STI testing and pregnancy testing. Oregon stepped in with state funding to fill the gap.
But economic challenges have only grown. Handler said the greatest difficulty is Medicaid reimbursement rates for primary care that have failed to keep up with costs. About 70% of their patients are on Medicaid.
"Our projections are really stark. The costs of providing care are continuing to rise," Handler said.
The organization has also struggled to recruit healthcare providers, including at the Grants Pass clinic. Handler said it had been relying on large one-time gifts and reserves to stay afloat, and she was concerned about surviving changes to Medicaid rolling out next year due to HR 1, which is projected to significantly increase the number of Oregonians without insurance.
Handler said her priority was a transition that didn't interrupt patient care. The cost of remaining open while winding down will use up most of the affiliate's remaining assets, with the balance transferred to the new organization in February.
About 60% of the staff losing their jobs are unionized. Handler said she has notified SEIU and will work with the union on layoff terms.
"We are eager to partner and collaborate together to make sure that all of our employees land on their feet," she said.
Planned Parenthood Columbia Willamette is posting jobs to staff the three clinics it will take over and is strongly encouraging Southwestern Oregon employees to apply.