Salem Health finalizes $61 million Santiam Hospital merger

By Jules Rogers, The West Side Newspaper

Salem Health has finalized its $61 million merger with Santiam Hospital & Clinics after receiving final approval from the Oregon Health Authority and Oregon Department of Justice, strengthening the regional healthcare system while helping preserve services at the Stayton hospital.

The affiliation, finalized Aug. 31, includes a $35 million capital investment, Salem Health’s assumption of $22 million in Santiam Hospital debt, and access to a replacement Epic electronic health record system before Santiam’s current agreement expires in June 2027.

This comes after Congresswoman Janelle Bynum (OR-05) urged Oregon Attorney General Dan Rayfield to urgently approve the proposed affiliation between Salem Health and Santiam Hospital on August 7.

Santiam Hospital faced financial challenges that could disrupt care and leave tens of thousands of Oregonians without access to reliable healthcare, according to Rep. Bynum’s office. Salem Health proposed an affiliation with Santiam to maintain high-quality care and preserve local employment and services after hospital employees, patients, and local leaders called for the affiliation to be approved.

“This is people’s healthcare we’re talking about,” said Rep. Bynum in a statement. “At its core, this matter is about ensuring that Oregon families continue to receive reliable healthcare close to home.”

Rep. Bynum said Residents throughout the Santiam Canyon and surrounding communities depend on local emergency care, surgical services, primary and specialty care, women’s health and maternity services, and coordinated community-based programs.

“If Santiam’s condition deteriorates or services are disrupted, patients and families — not institutions — will bear the consequences,” she said.

Santiam Hospital experienced a $7.5 million operating loss in 2023 and was unable to stabilize long-term sustainability in 2024 and 2025, according to Rep. Bynum‘s office. Its 2026 Q2 reports reported $1 million in losses, and was facing a major challenge in securing or replacing their electronic health record agreement that expires in June 2027.

The merger with Salem Health includes a $35 million capital investment, assumption of $22 million in debt, access to a replacement Epic electronic health record platform before Santiam's current agreement expires in June 2027, and preservation of local employment and services. Salem Health has also committed to retaining employees and continuing to invest in services.

Jenna Styoles is the manager of Santiam Women’s Clinic. She said her grandmother helped open the doors of the Santiam Hospital as a member of the very first nursing staff in 1953, and that her family, friends, and neighbors have relied on the care provided here for generations.

“As a Santiam Hospital employee for the past 12 years, I have had the privilege of caring for the women and families in our community and seeing firsthand the difference compassionate, local healthcare makes,” Styoles said. “The families in Stayton and our surrounding canyon communities deserve the same access to skilled, timely healthcare as anyone else, because where you live should never determine the care you receive — and when emergencies happen, the minutes truly matter — I have witnessed this firsthand, over and over again.”

According to Salem Health, full integration is expected to take several months. In an official statement, the organization said during the merger process, it took into account community engagement responses from patients, employees, community members, local organizations, and regional partners.

Salem Health’s statement said that patients will be able to continue to access care just as they always have, and its top priorities remain supporting our clinicians and staff while providing compassionate, high-quality care.