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Aug 01, 2026
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Santiam Hospital Merger

Santiam Hospital and Salem Health have requested an emergency exemption from the Oregon Health Authority to merge, citing financial instability and the need for urgent action to protect healthcare services in the region.

Local Lawmakers Weigh In

Seven local lawmakers, including state representatives Kevin Mannix, Tom Andersen, Rob Nosse, Hai Pham, and Ed Diehl, as well as state senators Fred Girod and Kim Thatcher, have expressed strong support for the deal, urging the Oregon Health Authority to grant the emergency request.

The lawmakers argue that the proposed affiliation with Salem Health represents a thoughtful, locally focused solution that preserves healthcare services in the region and keeps healthcare decisions rooted in the Mid-Willamette Valley.

Regence BlueCross BlueShield Objects

Regence BlueCross BlueShield, Oregon’s largest health insurer, has objected to the merger, arguing that Santiam Hospital is financially stable and that the deal would harm patients by increasing the cost of care and expanding Salem Health’s reach in the local healthcare market.

Regence claims that the urgency over Santiam’s projected cash-on-hand is unfounded, citing that among Oregon’s 59 hospitals, 38 have less than 30 days cash-on-hand, and none are seeking emergency mergers.

Patient Concerns

Some patients have expressed support for the merger, citing the need for stable healthcare services in the region, while others have raised concerns about Regence coverage and consolidation by Salem Health.

Stayton resident Donna Romandia, who has received care at Santiam Hospital, expressed support for the deal, stating that the hospital has been a trusted source of care for her family and community.


Original reporting: Salem Reporter — read the source article.

OBBM Network Editorial Staff

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Editorial team behind OBBM Network — independent, hyper-local journalism syndicated through HyperLocalLoop and OBBM Network TV.

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