Partners in community care

A: The health care environment is financially complex. We are choosing to strengthen local health care, expand access to services and grow future services. The organizations serve similar patients and share a culture that is committed to quality local care. Both organizations are dedicated to a vision of a healthy, vibrant community and expanding access to services.

A: The decision was made by both Salem Health Hospitals & Clinics and Santiam Hospital & Clinics Boards of Directors, CEOs, and Executive Leadership.

This reflects a shared commitment to advancing our mission and serving our community — it's about positioning Santiam for the future and growing services in the Santiam Canyon through a partnership between neighbors. It is not bringing in a large, out-of-state for-profit corporation who would send profits out of state instead of investing them in our communities.

Nothing about this partnership changes who we are: two community-rooted, nonprofit organizations with a long history of working together. We’re just making it official. 

 

A: Both organizations share a commitment to nonprofit mission-driven, high-quality care, and Santiam will continue to be governed by a local system board, including members of the Santiam Board. This will ensure that decisions reflect community needs. This partnership seeks to strengthen Santiam’s ability to grow services, leverage shared resources, and ensure we continue serving patients not just for today or tomorrow, but for decades to come.

A: Salem Health Hospitals & Clinics and Santiam Hospital & Clinics share a longstanding history of collaboration.

Over time, both organizations recognized that a formal partnership would further strengthen our mutual commitment to providing high‑quality, local and affordable care. The decision to pursue this partnership developed naturally and mutually from our already strong relationship. 

A: Salem Health has demonstrated its commitment to local investment in rural health care, affiliating with West Valley Hospital in 2002 and consistently investing in its growth and infrastructure. Most recently, West Valley expanded from 6 to 25 beds in 2023 and increased staffing by more than 60%. As part of the same $25 million project, the hospital opened a new specialty clinic, offering outpatient services including wound care, anticoagulation, infusion, medication management and outpatient rehabilitation to better serve the community and complement existing hospital services.

This year, Salem Health began a $74 million West Valley campus renovation project to meet future community needs, including a new, expanded emergency room and additional upgrades supporting a larger footprint and greater patient capacity.

A: Yes, Santiam Hospital & Clinics will remain nonprofit.

A: The Oregon Health Authority will now review the partnership request. In the meantime, both systems are committed to proactive engagement as we move forward, including listening and engaging with staff, providers, patients and community leaders to understand how this partnership can best meet the needs of mid-Willamette Valley.

A: The anticipated timeline for partnership is Sept. 30, 2026, pending Oregon Health Authority approval.

A: There are no immediate changes to your care. Our top priority remains the same: supporting our clinicians and staff and continuing to provide the compassionate, high-quality care you know and deserve.

A: Both organizations will continue to operate as they do now. Donors can support local services through the Santiam Hospital & Clinics Foundation, the Salem Health and West Valley Foundations.

A: The OHA review process includes a period of public comment which would allow members of the community to share their thoughts. You may also email news@santiamhospital.org or community.relations@salemhealth.org.

A: You may send your letter of support to the following emails:  

governor.kotek@oregon.gov

sejal.hathi@oha.oregon.gov

hcmo.info@oha.oregon.gov

Recommended letter heading: 

[DATE] 

The Honorable Tina Kotek, Governor 
900 Court Street, Ste. 250 
Salem, OR 97301-4047 

Dr. Sejal Hathi, Director 
Oregon Health Authority 

Health Care Market Oversight Program 
Oregon Health Authority 

Or you may visit Oregon Health Authority’s website and add a public comment on the HCMO site: HCMO Public Comment Form

A: Both systems are committed to proactive engagement as we move forward including listening and engaging with staff, providers, patients and community leaders to understand how this partnership can best meet the needs of mid-Willamette Valley. This may include town halls, emails, website updates and press releases.

A: The partnership will strengthen our ability to grow services, leverage shared resources, and ensure we can continue serving patients not just for today or tomorrow, but for decades to come. In addition, both organizations believe that partnership can increase access to care, particularly for marginalized communities. 

A: No. As nonprofit health systems, we don’t report to shareholders. We’re guided by volunteer community boards and overseen by the IRS and the State of Oregon. They all use different technical terms for what we’re doing — but the plain and accurate word is partnership.

The partnership between Salem Health Hospitals & Clinics and Santiam Hospital & Clinics will combine the two entities where Santiam will become a hospital in the Salem Health system.  The structure brings the strengths of the two organizations together to better serve their collective patients.

Health care is getting more complex and more expensive. By partnering, we can strengthen quality care, expand services in the Canyon, and bring together two experienced teams focused on one goal: delivering the right care, at the right time, in the right place for you and your family.   

A: Santiam Hospital & Clinics has a contract with Regence BlueCross BlueShield well into 2027. We will inform our community well in advance of any updates affecting future years.

A: All health insurance payer contracts — including our agreement with Regence — come up for renewal on a regular basis. Most are reviewed annually. This renewal cycle is intentional: it gives both payers and health care providers the opportunity to sit down together, discuss any needed updates to rates or processes, address emerging issues and ensure the agreement continues to serve both organizations well. These conversations are rooted in long-standing relationships and a shared understanding of what's happening in the health care marketplace. Through this collaborative approach, both parties work together to support patient care, organizational stability and community needs. We expect to follow this process when our current contract expires and negotiate in good faith. 

A: As Regence remains out of network, patients insured by Regence cannot access scheduled, non-emergency care at Salem Hospital and West Valley Hospital, and all inpatient and outpatient services. However, Regence patients can and should access emergency services at Salem Hospital and West Valley Hospital. All insurers, including Regence, are required to cover emergency services even if the hospital is out of network. 

Salem Health has been out of network with Regence Blue Cross Blue Shield since Jan. 1, 2025. The reason Regence is not in network with Salem Health is simple: Regence refused to offer fair market rates to Salem Health, even though 16 other health insurance plans are contracted for fair rates.  

Through last December, more than 8,000 members have left Regence, according to the Oregon Division of Financial Regulation. For many employers, open enrollment occurred after Jan. 1, 2026, and membership data will be released in May. 

Salem Health, like OHSU, which recently ended their contract with Regence, could not agree on fair payment rates for a new contract. For Salem Health, and all health care systems in Oregon, we simply cannot sustain health care without fair reimbursement. If we’d agree to their rates, it would have significantly impacted our ability to provide care. 

Salem Health has been, and continues to be, ready to sign a contract with Regence when they offer fair market rates. In August 2025, Salem Health requested Regence engage in confidential negotiations; to avoid upsetting the public should Regence once again refuse to offer market rates. To date, Regence has not agreed to confidential negotiations with Salem Health.