(Salem, Ore. – July 8, 2026) – Salem Health Hospitals & Clinics and Santiam Hospital & Clinics filed an emergency exemption with the Oregon Health Authority’s (OHA) Health Care Market Oversight (HCMO) program to preserve access to care in rural Marion County. 

The parties signed an agreement to partner with one another on January 19, 2026, subsequently filing an application with the OHA. OHA deemed the application complete on April 16, 2026, starting a preliminary review process. On May 5, 2026, OHA moved the partnership into comprehensive review.  

Since the agreement to partner in early 2026, Santiam’s financial condition has deteriorated rapidly, turning a long-term strategic partnership into an acute emergency. 

“Despite our commitment to preserving access to care, our financial outlook is expected to worsen, threatening rural health care for residents of the Canyon,” said Maggie Hudson, MBA, President and CEO of Santiam Hospital & Clinics. “Santiam’s expenses are up, and revenue has not kept pace with these cost increases.” 

Additional time pressure is compounded by the contract termination of Santiam’s electronic health record system, Epic, which terminates in 2027. Santiam must begin an EHR transition project by September 2026, yet lacks the capital necessary to do so. If Santiam cannot effectuate this EHR transition, it can no longer operate as a hospital. 

Santiam’s days of cash on hand is now lower than Bay Area Hospital’s was at the time the Oregon Legislature provided it with a state-backed financial lifeline. Prompt approval by the Oregon Health Authority is essential to prevent Santiam from imminent insolvency. 

Without timely approval, Santiam will need to take drastic measures to reduce costs. This will have devastating effects on access to care for residents of the Canyon.  

“Without Santiam’s services, Canyon residents, in some cases, will have to drive over an hour to the nearest hospital for emergency and maternity care,” said Hudson. 

Santiam is the largest private employer in the Canyon, with over 750 employees. It operates the only hospital as well as a network of clinics. Critically, it operates the primary rural ambulance service for the Canyon. Santiam supports a community health infrastructure that directly addresses the needs of medically underserved people, including those struggling with access to transportation and housing. 

Santiam chose Salem Health as a partner to avoid insolvency. Salem Health is a nurse-led, locally governed, mission-driven nonprofit serving the mid-Willamette Valley with Salem Hospital, West Valley Hospital in Dallas and a network of clinics.  

“The goal of this partnership and our mission remain the same — to ensure continued local access to care for the residents of the Santiam Canyon,” said Cheryl Nester Wolfe, MSN, RN, President and CEO of Salem Health Hospitals & Clinics. “Salem Health is prepared to bring investment and operational support to the Canyon to prioritize patients now and into the future.” 

To prevent the loss of Santiam Hospital & Clinics services, timely approval is needed from the Oregon Health Authority. 

Santiam and Salem Health requested a determination on the emergency by August 1, 2026. 

Salem Health Hospitals & Clinics  
Salem Health Hospitals & Clinics, a nonprofit health system governed by a volunteer board of trustees, offers exceptional care to people in and around Oregon’s Mid-Willamette Valley. It comprises hospitals in Salem and Dallas. Salem Hospital in Salem is Oregon’s largest hospital and a Level II Trauma Center. West Valley Hospital in Dallas is a 25-bed critical access hospital with a 24-hour emergency department. Salem Health also has a medical group of primary and specialty care providers, plus other affiliated services. Salem Health has more than 6,400 employees and a medical staff of more than 875 physicians and advanced practice providers.   

Santiam Hospital & Clinics  
Santiam Hospital & Clinics is a community-based nonprofit, acute-care 40-bed hospital, with an ER open 24/7 and owns and operates its ambulance program. The hospital is in the eastern region of Mid-Willamette Valley in Stayton, Oregon operating 13 medical clinics serving the Santiam Canyon in Marion and Linn counties. The hospital and clinics are governed by a volunteer board of directors. Santiam Hospital & Clinics serves more than 50,000 residents and employs more than 700 staff, including over 70 medical staff who are committed to excellence in community-based care.