The state has given the initial green light for a proposed $61 million merger between Salem Health and Santiam Hospital, Oregon Health Authority officials announced Friday. The decision comes ahead of the hospitals’ desired deadline of Aug. 1, which was stated in an emergency request for exempt ion from review submitted on July 3. Before that request, state health officials had been reviewing the deal since April. Hospital leaders’ emergency ask was driven by a sudden nosedive in Santiam’s financial stability, according to the request. “Financial conditions at Santiam have deteriorated rapidly,” the 15-page document said. “This has turned the affiliation from a long-term strategic imperative into an acute emergency.” They claimed that, without an early approval of the exemption, Santiam would be insolvent by September.  “After thoroughly considering all available information, OHA has granted the emergency request from Salem Health and Santiam to exempt their proposed affiliation from review,” an Oregon Health Authority statement said. The health authority grants exemption when there is a situation that immediately threatens healthcare services, a need to keep a facility solvent and an urgent need to protect consumers.  This is the only emergency exemption request it has granted for two hospitals, and the second in its history.  “Because of OHA’s timely approval, we are one step closer to ensuring access to care in the Santiam Canyon,” a joint statement from the hospitals said Friday. While reviewing the request, the health authority gathered over 300 public comments, which included a critical letter from Oregon’s largest health insurer, a supportive letter from seven local lawmakers and several mixed responses from patients. It also looked at documents from the hospitals, including financial reports, contracts and internal and external communications, to verify the hospitals’ claims and come to a decision. But the hospitals can’t close on the deal just yet. Per state law, the final decision lies with Oregon Attorney General Dan Rayfield.  Before that lands on his desk, the Oregon Department of Justice will have a virtual public meeting on Aug. 5 to hear feedback from citizens. Within 10 days of the hearing, the deal will go to Rayfield. The Oregon Department of Justice said in a July 20 statement it hasn’t found any reason to recommend disapproval of the transaction.   “Time is of the essence to save Santiam from insolvency,” the hospitals’ Friday statement said. “Swift approval without conditions is needed by the ODOJ.” While the justice department could impose conditions on the deal, the health authority will not have any oversight as the hospitals combine their systems. “While state law doesn’t allow OHA to further regulate this expected merger, OHA urges the two health systems to seriously consider and meaningfully address the concerns that members of the public have shared with OHA about the potential impacts of this transaction on health care affordability, quality, and access,” the health authority statement said. Some foremost concerns from citizens have been over Regence BlueCross BlueShield insurance coverage and Salem Health’s reach in the healthcare market. Hospital leaders hope that justice department will follow suit with the health authority and allow the merger without imposing any additional conditions. “This will ensure Santiam Canyon residents have access to local healthcare for decades to come,” Salem Health CEO Cheryl Nester Wolfe said in the statement. The hospitals will still have to follow other state regulations, the health authority statement said. After closing, Salem Health would pay Santiam a minimum of $61 million to cover its debts, invest in infrastructure and pay for a new, multi-million dollar health record system Santiam officials say is urgently needed. This story was updated Friday afternoon following a statement from the hospitals. Contact reporter Hailey Cook: [email protected] . “My go-to source every morning for accurate, local news.” Make Salem Reporter your trusted source for independent local reporting – every day. Stay informed and connected. Subscribe today. The post State approves Salem Health-Santiam merger  appeared first on Salem Reporter. ...read more read less