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Salem Health and Santiam Hospital file with state to merge

By Salem Reporter  
   February 17, 2026

Salem Health and Santiam Hospital & Clinics have asked the state to approve a $61 million deal that could merge the nonprofit hospital systems by fall. The mid-Valley hospitals publicly announced their intent to merge on Jan. 19. They signed an internal letter to seek partnership last summer. They filed their request with the state on Feb. 11. The move will allow Santiam to invest in healthcare for patients in the rural region outside Salem, said Santiam's CEO Maggie Hudson. The state oversees transactions between hospitals through the Oregon Health Authority’s Health Care Oversight Committee. If approved, this would be the second hospital merger cleared by the program since Adventist Health’s 2023 acquisition of the Mid-Columbia Medical Center in The Dalles. Leaders at the hospitals hope for approval by Sept. 30 or earlier. If approved, Santiam's name will become Santiam Hospital, Salem Health Hospitals & Clinics, marking the loss of its independent status. It is one of few independent acute care hospitals left in the state. 

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