Partnership Update

A: The decision was made by both Salem Health Hospitals & Clinics and Santiam Hospital & Clinics Boards of Directors, CEOs, and Executive Leadership. This reflects a shared commitment to advancing our mission and serving our community – it’s about positioning Santiam for the future and growing services in the Santiam Canyon through a partnership between neighbors. It is not bringing in a large, out-of-state for-profit corporation who would send profits out of state instead of investing them in our communities. Nothing about this partnership changes who we are: two community-rooted, nonprofit organizations with a long history of working together. We’re just making it official.  

A: Salem Health has demonstrated its commitment to local investment in rural health care, affiliating with West Valley Hospital in 2002 and consistently investing in its growth and infrastructure. Most recently, West Valley expanded from 6 to 25 beds in 2023 and increased staffing by more than 60%. As part of the same $25 million project, the hospital opened a new specialty clinic, offering outpatient services including wound care, anticoagulation, infusion, medication management and outpatient rehabilitation to better serve the community and complement existing hospital services. This year, Salem Health began a $74 million West Valley campus renovation project to meet future community needs, including a new, expanded Emergency Room, and additional upgrades supporting a larger footprint and greater patient capacity.  

A: Yes, Santiam Hospital & Clinics will remain nonprofit.   

A: No. As nonprofit health systems, we don’t report to shareholders. We’re guided by volunteer community boards and overseen by the IRS and the State of Oregon. They all use different technical terms for what we’re doing — but the plain and accurate word is partnership. The partnership between Salem Health Hospitals & Clinics and Santiam Hospital & Clinics will combine the two entities where Santiam will become a hospital in the Salem Health system.  The structure brings the strengths of the two organizations together to better serve their collective patients. Health care is getting more complex and more expensive. By partnering, we can strengthen quality care, expand services in the Canyon, and bring together two experienced teams focused on one goal: delivering the right care, at the right time, in the right place for you and your family.    

A: The Oregon Health Authority will now review the partnership request. In the meantime, both systems are committed to proactive engagement as we move forward, including listening and engaging with staff, providers, patients, and community leaders to understand how this partnership can best meet the needs of Mid-Willamette Valley.  

A: The anticipated timeline for partnership is September 30, 2026, pending Oregon Health Authority approval.  

A: There are no immediate changes to your care. Our top priority remains the same: supporting our clinicians and staff and continuing to provide the compassionate, high-quality care you know and deserve.  

A: Both organizations will continue to operate as they do now. Donors can support local services through the Santiam Hospital & Clinics Foundation, the Salem Health and West Valley Foundations.  

A: Both systems are committed to proactive engagement as we move forward, including listening and engaging with staff, providers, patients, and community leaders to understand how this partnership can best meet the needs of Mid-Willamette Valley. This may include town halls, emails, Salem Health and Santiam website updates and press releases.

To learn more, visit the Oregon Health Authority Healthcare Market Oversite Committee Website: Salem Health – Santiam.

A: Santiam Hospital & Clinics has a contract with Regence Blue Cross Blue Shield well into 2027. We will inform our community well in advance of any updates affecting future years.  

A: All health insurance payer contracts — including our agreement with Regence — come up for renewal on a regular basis. Most are reviewed annually. This renewal cycle is intentional: it gives both payers and healthcare providers the opportunity to sit down together, discuss any needed updates to rates or processes, address emerging issues, and ensure the agreement continues to serve both organizations well. These conversations are rooted in long‑standing relationships and a shared understanding of what’s happening in the healthcare marketplace. Through this collaborative approach, both parties work together to support patient care, organizational stability, and community needs. We expect to follow this process when our current contract expires and negotiate in good faith.   

A: The partnership will strengthen our ability to grow services, leverage shared resources, and ensure we can continue serving patients not just for today or tomorrow, but for decades to come. In addition, both organizations believe that partnership can increase access to care, particularly for marginalized communities.   

• Visit Oregon Health Authority’s website and add a public comment on the HCMO site: HCMO Public Comment Form 
• Leave a voicemail by calling #503.945.6161. Your message will be transcribed and posted as a comment. 
• Send a letter to the following emails: