Oregon Attorney General Dan Rayfield has approved the proposed merger between Salem (Ore.) Health Hospitals & Clinics and Stayton, Ore.-based Santiam Memorial Hospital.
Eight things to know:
1. Mr. Rayfield approved the deal Aug. 7, clearing the final regulatory hurdle for the $61 million transaction to close, according to an Aug. 7 news release from the Oregon Department of Justice.
2. “This approval came through a careful, independent legal review, as required by the Legislature,” Mr. Rayfield said in the release. “Oregonians deserve to know that decisions like this are made on the merits, following the process laid out by Oregon law. It’s more than a legal formality, it’s how we protect access to care for families in the Santiam Canyon and make sure a hospital that has served this community for generations can keep doing that work.”
3. Under Oregon law, the transaction could not close without the attorney general’s approval, the release said. The department held a virtual public hearing Aug. 5 that drew testimony from about two dozen speakers, and it accepted written comments through Aug. 7.
4. The merger was announced in January, and the organizations signed a definitive agreement Jan. 19. The department described Santiam as a 40-bed, 73-year-old hospital serving the Santiam Canyon, and Salem Health as the largest hospital system in the Willamette Valley.
5. Santiam had warned regulators it faced imminent risk of insolvency, citing declining profits and the need to replace its EHR system, according to the release. The hospital has said its Epic contract terminates in 2027 and that it must begin transitioning to a new system by September but lacks the capital for the project.
6. The Oregon Health Authority granted the organizations an emergency exemption from Health Care Market Oversight review July 31, citing an urgent threat to healthcare access in the region. Because of the exemption, the agency cannot impose conditions on the deal or conduct follow-up reviews under current state law.
7. Salem Health has committed to assuming about $22 million in Santiam debt and investing at least $61 million in the organization, including $35 million in capital investments, funding for the EHR transition and $10 million for urgent projects in the first year after the transaction, according to OHA’s July 31 final determination.
8. Santiam is the region’s largest private employer, with more than 750 employees, and operates the area’s primary rural ambulance service and 13 clinics, according to its website.
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