Santiam Hospital & Clinics is now officially part of the Salem Health system, moving the two organizations from regulatory approval into the work of combining their operations.
The affiliation was completed Sept. 1, less than a month after Oregon Attorney General Dan Rayfield approved the partnership without conditions.
For patients, the immediate message is simple: care at Santiam is continuing without changes to where patients can receive services. The larger transition will happen over the coming months as Santiam is integrated into Salem Health.
Santiam employees will become Salem Health employees under the agreement. Salem Health also plans to invest millions of dollars in Santiam’s health care infrastructure, while connecting the rural hospital and its clinics with Salem Health’s larger network of specialists and resources.
The combination is particularly significant for communities east of Salem served by Santiam Hospital, where maintaining local hospital and primary care services had become a growing concern. Before the affiliation was completed, Santiam had warned that its financial position put services at risk without a larger health system partner.
One issue remains unsettled for some patients.
Santiam currently has a contract with Regence BlueCross BlueShield extending well into 2027, but Regence must agree to continue covering services at Santiam following the affiliation. Salem Health says the matter is still developing.
Salem Health and Santiam will remain nonprofit organizations. Santiam will operate as a hospital within the Salem Health system as the organizations work through the remaining integration over the next several months.
