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Gus Iversen, Editor in Chief | January 23, 2026
Salem Health Hospitals & Clinics and Santiam Hospital & Clinics have signed a definitive agreement to form a partnership, with plans to seek regulatory approval from the Oregon Health Authority.
The agreement aims to strengthen care coordination and improve access to services while maintaining each organization’s nonprofit status and local focus.
The proposed partnership would align two health systems with a history of collaboration and similar missions. Both organizations emphasize community-based care, and leaders say the move is designed to ensure long-term sustainability in a financially challenging environment.

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“This is an exciting opportunity to improve health care for the patients we serve and grow services for the Santiam Canyon,” said Cheryl Wolfe, RN, president and CEO of Salem Health Hospitals & Clinics. “We know that deep partnerships can bring strength and stability and ultimately improve care and access for patients in our region.”
Based in Salem, Oregon, Salem Health operates Salem Hospital and West Valley Hospital in Dallas. It is the region’s largest provider, with over 6,400 employees and more than 875 clinicians. The system has invested in rural care in recent years, including a $25 million expansion of West Valley Hospital that increased bed capacity and added specialty outpatient services.
Santiam Hospital & Clinics, based in Stayton, Oregon, is a 40-bed acute care facility with 13 clinics serving the Santiam Canyon. The health system employs more than 700 staff and has been serving eastern Marion and Linn counties for over 70 years.
“Salem Health is an ideal partner for us,” said Maggie Hudson, MBA, president and CEO of Santiam Hospital & Clinics. “They share our commitment to the local community and have demonstrated their ability to invest in rural health care.”
Both organizations have previously collaborated on regional public health initiatives, including community health assessments and outreach programs targeting social determinants of health.
The agreement is pending state approval. Leaders from both systems say they will engage with staff, patients, and community members throughout the review process.