The Center Orthopedic & Neurosurgical Care in Central Oregon is located on Neff Road in Bend. 

St. Charles Health System is in talks to employ a majority of providers and staff at The Center Orthopedic & Neurosurgical Care & Research, the region’s largest, private orthopedic clinic, which has about 105,000 patient visits a year in Central Oregon.

The terms and conditions of the transaction — sale, merger or partnership — are still being hashed out and will be subject to approval by the Oregon Health Authority Health Care Market Oversight program.

St. Charles Health System does not have any orthopedic surgeons, said Alandra Johnson, the health system’s spokeswoman.

“This is not a merger,” Johnson said. “We are discussing a potential transaction, but the details of what that looks like have not been formalized.”

The end result is that The Center employees would become St. Charles employees, said The Center Orthopedic and Neurosurgical Care CEO Brett Hazlett.

Former founder and managing partner at The Center, Knute Buehler, said it’s hard for independently owned physician practices to be successful financially. As a former practicing orthopedic surgeon who also was a state representative for Bend, Buehler said The Center experienced many of the same financial pressures that other clinics have endured.

“The Center was (among) the last physician owned clinic in Central Oregon,” said Buehler. “There are some that are one or two members still practicing. The fixed payments haven’t kept up with the costs, and margins have condensed. The Center has had a hard time recruiting physicians to the region.

“It’s just not seen as a desirable place to practice.”

Hazlett, too, said it’s been challenging to attract orthopedic surgeons, as costs to provide care have risen, reimbursements have remained flat and the cost of living has risen in Central Oregon.

The Center is a Central Oregon company that was founded in 1958 as Bend Orthopedic and Fracture. Today it has three offices in Bend, and one in Redmond. It operates satellite facilities in Sisters, Prineville, Madras, La Pine, Burns and John Day. The Center employs 27 physicians, 27 advance practice providers and about 200 support staff.

St. Charles operates four hospitals in Central Oregon and employs more than 4,700 people.

“Ultimately our goal is to preserve and strengthen access to orthopedic, neurosurgical and physical medicine in the region,” said Dr. Steve Gordon, St. Charles Health System CEO and president. “This is, simply put, the right thing to do, and I’m proud that St. Charles is in a position to step in and help support a service line that is critical to our community.”

Hazlett said that The Center intends to continue operating at every location it is currently in. The Center has experienced some challenges similar to other independent specialty practices, according to a prepared statement.

Without an influx of cash, The Center’s leadership is concerned that more providers would leave the region, leading to delays in care for patients. Currently it can take up to six months to schedule an initial orthopedic appointment with a joint replacement surgeon and another six months before surgery can be scheduled, according to The Center’s prepared statement.

There already exists a relationship with The Center orthopedists who work daily trauma service shifts, according to the statement.

A transition plan is being worked out between the two organizations, with the goal of limiting disruptions to patient care.

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