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OHSU, Salem Health affiliation finalized: 5 things to know

Oregon Health & Science University in Portland and Salem (Ore.) Health have finalized an agreement to manage their respective clinical services as an integrated health system.

Here are five things to know about the deal.

1. The agreement creates OHSU Partners, a joint management company that will become operational Nov. 16.

2. Under the agreement, the two organizations will operate as an integrated system while still being independently governed by their respective boards of directors.

3. Peter Rapp, who currently serves as a senior vice president and the executive director of OHSU Healthcare, will serve as OHSU Partners' CEO. Salem Health President and CEO Norm Gruber will serve as president of OHSU Partners.

4. The affiliation covers the clinical enterprises of both organizations, including Salem Health's two hospitals — Salem (Ore.) Hospital and West Valley Hospital in Dallas, Ore. — OHSU Hospital and OHSU Doernbecher Children's Hospital. The affiliation does not include OHSU's teaching and research components.

5. OHSU President Joe Robertson, MD, said this affiliation reflects a new way to construct clinical partnerships. "The more common approach of creating alignment through acquisitions too often results in a loss of focus on specific community needs," he said. "OHSU and Salem Health have developed what we think is a better approach."

More articles on healthcare industry transactions:

10 of the most interesting healthcare transactions of 2015
Allegiance Health to join Henry Ford Health System
Exit activity in private equity healthcare drives busy deal flow: 5 things to know



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