Along with rural hospital systems nationwide, Corvallis based Samaritan Health has been taking quite the drubbing these last few years. We reported on their debt problems back in March, and that they were looking at options.
Some of that looking became public earlier this month, specifically the idea that shuttering two outlying birthing centers could be, maybe, considered. That idea drew picketing from nurses and community members.
And then… then came last week’s letter to Samaritan’s CEO from Oregon’s U.S. Senators Ron Wyden and Jeff Merkley, which was also signed by Congresswoman Val Hoyle.
Natural forces being what they are, Samaritan’s CEO then issued his own public relation-y but soberingly fair open letter a couple days later. As a small aside, Cahill only took over the top slot at the nonprofit on May 19.
Context: Continuingly low Medicare and Medicaid reimbursements combined with spiking labor and supply costs have hit the health care industry hard. Lose money on enough transactions, and you won’t be transacting anything after a while – it’s a situation that’s closing down rural hospitals nationwide.
For smaller systems, like rural hospitals and our community’s own Samaritan, it’s been especially difficult because they don’t have the same economies of scale as a larger system.
Many Oregon locales have similar health care landscapes. Talking to industry insiders, they worry Oregon’s healthcare system is headed toward a statewide collapse.
Other options being weighed by Samaritan include mergers, both as the acquirer or acquiree.
Locally, our health care ecosystem has already taken a big hit. Longtime stalwart Corvallis Clinic was taken over by Optum, a United Health subsidiary in 2024. United Health is a predominant health insurer, and they along with Optum have exceedingly troubling histories when it comes to patient care. Optum has been gobbling up health care practices nationwide these last few years – they now employee about one in ten doctors nationally.
Former Corvallis Clinic staffers are fleeing the practice, and we hear Optum will be making deeper changes to our local system come fall. At the time of the acquisition, nobody paid much attention to what it would mean for a health insurer like United Health to own a significant provider in Corvallis.
Text from the letters is below, firstly to Cahill from Merkley, Wyden and Hoyle. After that, the text from Cahill’s open letter. We include our take at the end.
Dear Mr. Cahill: Congratulations on your new role as president and CEO of Samaritan Health Services. We look forward to working with you to protect health care access for thousands of Oregonians in the Willamette Valley and on the Oregon Coast.
We write today to express concerns with Samaritan Health Services’ reported plan to consolidate its labor and delivery services. We understand these recommendations will be considered by the board as soon as this week. More specifically, we are concerned that Samaritan Health Services is planning to close the labor and delivery unit in Lincoln City and consolidate those services in Newport and also close the labor and delivery unit in Lebanon and consolidate those services in Albany.
We have heard from concerned doctors and nurses that this decision would have devastating effects on the health and safety of expectant mothers, newborns, and families. The units in Lincoln City and Lebanon serve a wide geographic area, and their closure would force patients to travel dangerously long distances—in some cases, more than an hour—to receive both routine and emergency obstetric care. This decision would create a maternity care desert for the rural North Lincoln County catchment area. In addition, this would create an undue burden for many families, especially those with limited funds, limited transportation, or complex medical needs, and it may cause them to bypass necessary care.
We are aware of the economic challenges that are squeezing the finances of labor and delivery units across Oregon. Low volumes of births, workforce shortages, and challenging reimbursement rates make it difficult for rural hospitals to continue offering birthing services. However, we have also seen the negative impacts of labor and delivery unit closures on Oregon mothers and families. It will require innovative approaches, community engagement, and a commitment from Samaritan Health to preserve access to safe maternal health care.
We urge you to pursue a thoughtful, community-driven process to preserve access to labor and delivery services in Lincoln City and Lebanon. Physicians, nurses, and other clinicians who provide obstetric services should be part of the process and help develop recommendations that will keep birthing services open while addressing the tough financial environment for Oregon hospitals. This could include collaborating with nearby hospitals and deploying telehealth models to expand the capacity of the obstetrics workforce. In addition, Samaritan Health must engage in a transparent process with the community it serves before making any changes to the labor and delivery services it provides for the community.
We urge you to pursue all resources available to you to keep the labor and delivery units open in Lincoln City and Lebanon. Thank you for your commitment to serving the health care needs of Oregon families.
Cahill’s Open Letter: As I wrap up my first week as CEO of Samaritan Health Services, I want to take a moment to speak directly and plainly. There’s been a lot of talk this week — some of it based on incomplete information. So let me be clear about what’s happening, why it matters and how we’re moving forward.
Health care in Oregon is in a tough spot. According to the Hospital Association of Oregon, half the health systems in our state are operating at a loss. That’s not sustainable. Reimbursement from government payers is shrinking, even as more people rely on those programs. At the same time, the health challenges our patients face are more complex than ever.
Costs are rising — driven by inflation, staffing shortages and new regulations. It’s a simple but brutal equation: expenses are up, and revenue is down.
All across our industry, we’re being asked to do more with less — see more patients, provide more services, stretch farther. And while those of us in health care will always do our best to serve, no system or caregiver can keep stretching indefinitely without strain.
Samaritan is not immune. We’ve stepped up time and again to meet growing needs — expanding access, adding services, recruiting specialists, and stepping in when other community providers have needed support. And we’ve been open about the f inancial pressure we’re under.
But what hasn’t changed is why we’re here: to serve. As a nonprofit rooted in this region for more than a century, our mission is simple and unwavering: Building healthier communities together.
That work continues — and in many ways, it’s just beginning. Across our system, teams of clinicians and leaders are asking hard questions and thinking boldly about what a strong, sustainable Samaritan should look like in the future. This isn’t about quick fixes or sudden changes. No decisions have been made, and no changes to services are being implemented. In addition, no timeframe has been set to develop a plan or implement changes. The ideas we’re exploring still need to be tested, shared, improved, and aligned with what our community needs — not just this summer, but for the long term.
This is a pivotal moment. Health care is changing. If we want Samaritan to be here for the next 100 years, we must adapt. And we can’t do that alone.
To our legislators: We need your partnership to ensure fair reimbursement and investment in the systems that keep our communities healthy.
To the media: Help us tell the full and accurate story of what health care in Oregon is really facing.
To our community: Stand with us. Your support allows us to keep showing up when you need us most.
And to our employees: You are the heart of Samaritan. We are committed to supporting you, so you can keep doing the work you were called to do.
Building healthier communities is not a slogan — it’s a shared responsibility. Let’s move forward together.
Our Take: We are reminded of Optum’s takeover of The Corvallis Clinic. Only Corvallis City Councilor Jan Napack and State Senator Sara Gelser Blouin weighed in before we at The Advocate raised a stink. But a stink doesn’t fix anything. Neither does merely weighing in. Dollars, partnerships, and rule changes are what Samaritan needs now.
We appreciate the moral worry from our congressional delegation, but we suspect that what’s more necessary is political creativity. Action, not just from our gang in DC, but our local and state electeds as well.
We view a thriving and striving health care system as basic to an improving human condition. And on a more material level, we don’t love what we envision when we think about a Corvallis that develops into a place seen as lacking in that regard.
By Mike Suarez
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