Salem Health, the mid-valley’s largest medical provider, is in talks to acquire Santiam Hospital in Stayton, one of the few remaining independent hospitals in Oregon. Officials at Santiam Hospital Clinics confirmed Friday that the intent is for the Stayton operation to become part of Salem Hea lth. Salem Health officials wouldn’t address questions about the deal Friday, instead issuing a statement identical to one made by Santiam Hospital. The decision comes amid financial struggles at the Stayton nonprofit, which saw a failed merger with another major Oregon hospital system earlier this year. Neither Santiam Hospital or Salem Health would share details about what the two envision, but the Santiam hospital would maintain a local advisory board. The move will mark the second major hospital acquisition by Salem Health, which bought West Valley Hospital in Dallas in 1999. The nonprofit organization later steadily acquired several outpatient clinics, further solidifying their grip on health care in the region.  Salem Hospital, founded in 1896, operates one of the busiest emergency rooms on the West Coast, and has 644 acute care beds. The organization employs over 6,000 people.  Salem Health has also operated at a financial loss in recent years, reporting a loss of $52.4 million in 2024, according to tax filings. Its total revenue that year was $1.1 billion.  Santiam Hospital Clinics includes Santiam Hospital, an independent 40-bed rural hospital established in 1953, as well as 12 clinics in Marion and Linn counties. It is one of three remaining independent hospitals in Oregon, according to its website. Their network serves around 60,000 patients annually and employs more than 700 people. Santiam had intended to merge with a Corvallis-based nonprofit hospital system, Samaritan Health. The merger tanked in late May for undisclosed reasons, the Lund Report previously reported.  That deal was financially driven, according to an early merger summary authored by the Oregon Health Authority. The state document said that merger was “needed because Santiam can no longer financially support itself as an independent hospital.” In 2023, Santiam Hospital reported a loss of $6.3 million, according to tax filings. That year, they saw $229 million in total revenue.  Discussions between the hospitals began six months ago, according to Santiam Hospital Clinics spokeswoman Melissa Baurer.  Salem Health signed a nonbinding letter of intent  on July 11 with Santiam Hospital Clinics “to explore and plan for a potential affiliation,” Baurer said. There is no record the hospitals publicly announced that agreement.  Baurer wouldn’t say what factors led the Stayton hospital to talks with Salem Health. “Salem Health is a strong, long-standing health care partner that cares for our same patients and shares the same values. We are both committed to keeping health care local, maintaining our nonprofit status, and above all else, investing in high quality patient care,” Baurer said. Lisa Wood, Salem Health spokeswoman, on Friday provided a duplicate of the Santiam statement and otherwise didn’t respond to questions about the possible merge or the future of patient care and staffing at either organization. The hospitals will likely execute an affiliation agreement with the Oregon Health Authority in early 2026 and see affiliation established by year’s end “if all goes as planned,” Baurer said. Baurer said Santiam patients would see no changes to insurance coverage or any immediate changes to clinical care. Patients would be informed of any updates “well in advance,” she said. She said the Stayton hospital is committed to retaining their staff through the process. Have a news tip? Contact reporter Hailey Cook: [email protected] . A MOMENT MORE, PLEASE – If you found this story useful, consider subscribing to Salem Reporter if you don’t already. Work such as this, done by local professionals, depends on community support from subscribers. Please take a moment and sign up now – easy and secure: SUBSCRIBE. The post Salem Health in talks to acquire Stayton hospital  appeared first on Salem Reporter. ...read more read less