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Santiam Hospital to merge with Salem Health
The merger aims to strengthen health services in the Santiam Canyon region.
Jan. 30, 2026 at 4:55pm
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Santiam Hospital & Clinics and Salem Health have announced a deal to merge their operations. The merger requires approval from the Oregon Health Authority and is expected to be completed by September 2026. Santiam's network of clinics in the Santiam Canyon will continue operating, and the merger will allow Santiam Canyon residents access to additional services offered by Salem Health.
Why it matters
The merger is intended to improve healthcare access and services for the Santiam Canyon region, which has historically relied on transfers to Portland or Salem for certain treatments. The partnership will also help Santiam Hospital address financial challenges and ensure its long-term viability.
The details
Under the merger agreement, Salem Health will provide a capital infusion to Santiam Hospital and take over its debt. Santiam's local leadership will remain in place, and the organizations plan to expand services rather than cut jobs. The merger will give Santiam Canyon residents access to Salem Health's broader range of offerings, while Santiam will continue operating its network of clinics in the region.
- The merger announcement was made on January 22, 2026.
- The merger requires approval from the Oregon Health Authority, a process expected to take about 9 months.
- The organizations hope to have the new structure in place by September 30, 2026.
The players
Maggie Hudson
President and CEO of Stayton-based Santiam Hospital & Clinics.
Cheryl Wolfe
President and CEO of Salem Health.
Santiam Hospital & Clinics
A community-based nonprofit, acute-care 40 bed hospital that also operates 13 medical clinics serving the Santiam Canyon in Marion and Linn counties.
Salem Health
A nonprofit health system that includes hospitals in Salem and Dallas, and has more than 6,400 employees and a staff of more than 875 physicians and advanced practice providers.
What they’re saying
“We want to keep more of them here or in Salem instead of Portland. It's a big advantage for us, because Salem is far easier.”
— Maggie Hudson, President and CEO of Stayton-based Santiam Hospital & Clinics
“We get it. 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.”
— Cheryl Wolfe, President and CEO of Salem Health
What’s next
The merger requires approval from the Oregon Health Authority, a process that is expected to take about 9 months.
The takeaway
This merger aims to strengthen healthcare services and access for the Santiam Canyon region by combining the resources and capabilities of Santiam Hospital and Salem Health. It represents a collaborative approach to addressing the financial and operational challenges facing rural healthcare providers.
