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Salem Health and OHSU in Preliminary Discussion About Potential Affiliation

Mar 17, 2014

Salem Health and Oregon Health & Science University (OHSU) are discussing potential affiliation.

In August 2013, the Salem Health board of trustees invited a small group of carefully selected health organizations on the West Coast to discuss potential partnership or affiliation through a Request for Information process. Those conversations were confidential in order to encourage frank discussion. At this time, Salem Health is continuing to evaluate a possible affiliation or partnership with OHSU.

“It is early in the process and too soon to tell if our ongoing conversations with OHSU will lead to a formal affiliation, however, I am encouraged by our progress to date,” stated Norman F. Gruber, president and CEO of Salem Health. “The formal collaboration between Salem Cancer Institute and OHSU Knight Cancer Institute, which has been in place for several years, has benefited our patients and revealed that we share similar commitments to the communities we serve.”

Since 2010, the Salem Health board of trustees has been engaged in a focused review and analysis of health care trends to determine the most effective ways to continue advancing its community mission. Changes in health care are challenging hospitals to improve quality and access and, at the same time, control and reduce costs.

“The board hopes that our discussions with OHSU will lead to a letter of intent and formal due diligence in the coming months,” said Alan Costic, Salem Health board chair. “However, we will not move forward with a partnership unless it advances our mission to improve the health and well-being of the patients and communities we serve.”

Gruber added, “While Salem Health has strong market share and a strong balance sheet, exploring a potential partnership with another strong health care provider is one of the best ways to achieve the scale and resources needed to serve our patients and the community in the future.“

Salem Health is the leading health provider in the mid-Willamette Valley, and OHSU is the state’s only academic health center.

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