Rolla, Mo.-based Phelps Health and Salem (Mo.) Memorial Hospital District have ended discussions about a potential affiliation after a year of exploratory talks, The Salem News reported June 20.
The decision follows an extensive due diligence phase, review of contractual terms and efforts to secure public funding for capital improvements. Despite broad support for the proposed collaboration, Missouri’s final budget for fiscal year 2026 did not include the requested appropriations, according to the report.
Salem Memorial Hospital, which has seen recent improvements in its operating margins, plans to remain independent for the time being.
“Our discussions with Phelps Health have been constructive and grounded in a mutual desire to enhance healthcare access. Although these talks are concluding, we are proud of our recent financial progress and remain committed to serving our community with excellence,” CEO Brooke Bollman told The Salem News.
“We have great respect for the team at Salem Memorial Hospital and the dedication they show their patients,” Jason Shenefield, CEO of Phelps Health, told the publication. “While the affiliation will not proceed, we are encouraged by Salem Memorial’s recent financial improvements and remain open to future collaborations that benefit our communities.”
