Last year, Corvallis based Samaritan Health Services announced they would acquire Santiam Hospital & Clinics, and that they had signed what they called a definitive agreement to merge. That deal appears to be dead.
“After a year of due diligence and operational exploration, Samaritan Health Services and Santiam Hospital & Clinics announced today their mutual decision to cease pursuit of formal affiliation,” said a release from Samaritan spokesperson Jennifer Nitson yesterday.
Context
It came out earlier this month that Samaritan is looking at closing birthing centers in outlying Sweet Home and Lincoln County in a bid to save money. Back in March, we reported debt had become a problem for the locally run nonprofit health care provider. Earlier this month, longtime Samaritan staffer Marty Cahill took the reins at Samaritan from prior president and chief executive officer Doug Boysen.
Hospital systems nationwide are suffering from staffing and supply cost spikes, while Medicaid and Medicare reimbursements continue to lag. Smaller systems like Samaritan’s, and others throughout the state, don’t have the economies of scale of a larger system, which makes absorbing the impacts tougher. Industry insiders worry Oregon’s health care system could be heading toward a financial collapse.
The two organizations had signed a nonbinding letter of intent, or LOI, in late May 2024 to allow the parties to further evaluate the affiliation with the anticipated outcome of Santiam Hospital & Clinics becoming part of Samaritan Health Services.
Back when the prospective merger was proposed, both organizations had said they were hoping for merger approval by the summer of this year.
What they said last year
Higher-ups at both organizations issued statements when the merger plan was announced last year.
“We are excited to take this next step with Santiam Hospital & Clinics, transitioning our collective intent into a joint action plan,” said Doug Boysen, then president and chief executive officer of Samaritan Health Services.
“In the months since we signed the LOI, we have held town halls in Stayton, Turner, and Mill City. Through this process our enthusiasm has only grown,” said Maggie Hudson, president and chief executive officer of Santiam Hospital & Clinics. “Our two organizations are closely aligned, and our collective strengths position us well for continued vitality so we both remain long-lasting, community-focused institutions.”
The way Samaritan and Santiam saw it at the time
Both organizations are nonprofit, community-based health systems with, as they put it at the time, similar missions, visions, values, and cultures. Both organizations said they shared a commitment to keeping services local.
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.
By Mike Suarez
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