Samaritan Health has announced they are looking into taking over an 11-clinic healthcare provider – Santiam Hospital & Clinics, which is currently based in Marion County. Samaritan is roughly 10 times larger than Santiam.
On Wednesday, the two nonprofits issued a joint announcement that they plan to pursue a formal affiliation. They also said that so far, the two organizations have signed a nonbinding letter of intent (LOI) to allow the parties to further evaluate the affiliation with the anticipated outcome of Santiam Hospital & Clinics becoming part of Samaritan Health Services.
What they’re saying
“We are excited about working more closely with the team at Santiam Hospital & Clinics as we move into this next phase of our collaboration,” said Doug Boysen, president and chief executive officer of Samaritan Health Services. “Throughout our discussions, it has been clear that the alignment of our organizations – our missions, values and culture –positions us well to strengthen services across the region for those in our communities.”
“We are focused on serving our respective communities and learning from each other. Our shared strengths position us well for continued vitality so we both remain long-lasting institutions,” said Maggie Hudson, president and chief executive officer of Santiam Hospital & Clinics. “Looking toward this process, I’m driven by the relationships we are forging between our organizations, leaders and clinicians in order to better serve our communities.”
Both organizations are nonprofit community-based health systems, with what they’re saying are similar missions, visions, values and cultures. Both organizations say they share a commitment to keeping services local – and that joining together through affiliation would strengthen both organizations through increased access to services, improved health equity and enhanced services.
The organizations say they are committed to maintaining local governance and leadership and retaining existing staff and clinicians.
Context
“The health care industry is evolving, and we believe that this affiliation will ensure that Samaritan Health Services and Santiam Hospital & Clinics both remain sustainable, strong institutions, providing access to quality health care,” said Boysen.
“To fulfill our mission, we will need the contributions of our talented and dedicated staff and clinicians; and we know that bringing together expertise from both systems will enhance our respective operations and services,” said Hudson.
Samaritan Health Services and Santiam Hospital & Clinics said they will work toward coming to terms on a definitive agreement in the coming months. The affiliation may be subject to regulatory review.
Earlier this year, Oregon regulators approved the takeover of The Corvallis Clinic by Universal Healthcare subsidiary, Optum Health. It is imaginable that a merger between Samaritan and Santiam could assist both organizations in avoiding a similar fate sometime down the road.
About the two organizations
Samaritan Health Services is a nonprofit regional health system that brings together five community hospitals, more than 100 physician clinics and multiple health insurance plans to serve more than 290,000 residents in Benton, Lincoln and Linn counties. Samaritan employs more than 6,000 workers, including 620 clinicians, and is governed by a volunteer board, which includes community members, physicians and hospital leaders.
Santiam Hospital & Clinics is also a nonprofit health care organization, governed by a volunteer board of directors. Santiam Hospital & Clinics is comprised of an independent, acute-care hospital in Stayton, Oregon, operating 11 clinics serving the Santiam Canyon in Marion and Linn counties. Santiam Hospital & Clinics serves more than 40,000 residents and employs more than 600 staff, including 70 medical staff.
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