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Emergency exemption filed
for Salem Health and Santiam partnership

What does this mean?

Cheryl-Wolfe-21

Cheryl Nester Wolfe, MSN, RN
President and CEO
Salem Health Hospitals and Clinics

By Cheryl Nester Wolfe, MSN, RN, President and CEO, Salem Health Hospitals and Clinics

I would like to share an update regarding our proposed partnership with Santiam Hospital & Clinics. The Oregon Health Authority placed our transaction in comprehensive review, which can take upwards of a year to complete. On Friday, July 3, we withdrew our initial application. At the same time, we filed for an emergency exemption. This process can only be used when there is an emergency, both for financial and for patient care reasons. It shortens and simplifies OHA’s timeline for approval or denial.

Since our original filing in January, Santiam’s financial condition has deteriorated rapidly, becoming an acute financial and patient care emergency. Santiam faces three compounding financial pressures, putting its operations at risk: mounting losses, a required EHR system replacement by June 2027 and increasing compliance concerns related to their outstanding loan obligations. Each of these pressures compounds the others. None can be solved by Santiam as a standalone organization, and a year will mean absolute reduction of services in the Canyon. Their circumstances reflect the reality facing small rural hospitals across Oregon. This is why their board had the foresight to seek a partner and chose Salem Health.

Despite Santiam’s commitment to preserving access to care, its financial outlook is expected to worsen, threatening rural health care for residents of the Canyon. Given these changes, we jointly filed an emergency exemption and requested a decision from the OHA by Aug. 1. Any delay beyond this requested date would put Santiam at imminent risk of insolvency and jeopardize care in the Canyon. The EHR implementation must begin no later than Sept. 1. Otherwise, they will be without an electronic medical record on July 1, 2027.

The goal of this partnership and our mission remain the same — to improve the health and well-being of the people and communities we serve. The Canyon residents are part of our community. We will care for current and new patients while preserving high-quality, not-for-profit, local health care services throughout the mid-Willamette Valley and Santiam Canyon, ensuring the long-term vitality of patient care for generations to come.