Santiam Hospital & Clinics and Salem Health have announced a deal to merge their operations.
Maggie Hudson, president and CEO of Stayton-based Santiam Hospital, and Cheryl Wolfe, president and CEO of Salem Health, announced the proposed deal at a Thursday morning video conference.
No financial terms were discussed, and the merger requires the approval of the Oregon Health Authority, a process Wolfe said would likely take about nine months. The two hospital systems hope to have their new structure in place by Sept. 30, Wolfe said.
Santiam Hospital had been seeking a financial partner for nearly two years. An earlier proposal to “affiliate” with Samaritan Health Services, which was announced in May of 2024, was officially pronounced dead in June of 2025.
“Salem Health is an ideal partner for us,” said Hudson in a press release distributed by the two hospitals. “They share our commitment to the local community and have demonstrated their ability to invest in rural health care. Together, we aim to strengthen our communities through a collaborative, community-driven partnership. We’re excited to explore what we can build together.”
Hudson said at the video conference that the hospital’s network of clinics in the Santiam Canyon, including outlets in Aumsville, Sublimity and Mill City, will continue as currently structured and that plans to add a pharmacy to the Mill City clinic are on track, with an opening projected for this spring. Grant funding is paying for the new pharmacy.
Wolfe said that the goal of the merger in terms of providing health care to Stayton and the Santiam Canyon is to increase the opportunities for rural residents.
“We get it,” she said at the video conference. “We understand the needs of the Canyon. We have been working on this for a year and we are completely committed to improving those services. We will be working to ensure that we maintain the footprint at Santiam Hospital but we also need to look at long-term needs and use our financial capital wisely.”
Santiam’s governing board will be allotted two seats on Salem Health’s board and Santiam board members also will be eligible to participate in the Salem board committees, Hudson said.
Hudson and Wolfe both noted challenges ahead in the health care realm because of HR1, the tax and spending bill promoted by President Donald Trump and passed by Congress on July 3, 2025. While many of its provisions don’t take effect until 2027, the cuts in Medicare, Medicaid and nutrition and food stamp programs are expected to seriously affect those in rural Oregon.
During a visit to Santiam Hospital’s Aumsville clinic in July of 2025 Hudson told visiting U.S. Rep. Andrea Salinas that 65% of the patients the Aumsville clinic serves are on Medicare or Medicaid.
About Santiam Hospital & Clinics: Santiam Hospital & Clinics is a community-based nonprofit, acute-care 40 bed hospital, governed by a local, volunteer board of directors. The health system also operates 13 medical clinics serving the Santiam Canyon in Marion and Linn counties. Santiam Hospital & Clinics serves approximately 40,000 residents and employs more than 700 staff, including over 70 medical staff.
About Salem Health: Salem Health is a nonprofit health system governed by a volunteer board of trustees that offers care to people in and around Oregon’s mid-Willamette Valley. It includes hospitals in Salem and Dallas. Salem Health has more than 6,400 employees and a medical staff of more than 875 physicians and advanced practice providers.
