Legacy Silverton Medical Center will stay in UnitedHealthcare's network even if the insurer and Legacy Health fail to reach a new contract by Sept. 30.

Several mid-Willamette Valley clinics also operate under a separate UnitedHealthcare contract and would not be affected by a split, The Oregonian reported Thursday, Sept. 10. The distinction matters for Salem-area residents who use Legacy facilities.

Legacy has notified UnitedHealthcare it plans to end its broader contract if no deal is reached by the end of the month. That would push most Legacy hospitals and clinics in the Portland area and southwest Washington out of UnitedHealthcare's network starting Oct. 1.

About 66,000 Legacy patients with UnitedHealthcare coverage received care from the health system in Oregon and southwest Washington in the past year, according to Legacy.

The dispute centers on payment rates. Legacy's expenses have jumped 50% since 2021 because of inflation and higher labor and supply costs, according to The Oregonian. UnitedHealthcare boosted its payments to Legacy in 2024 and 2025, but Legacy said the increases were not enough to close the gap.

Merrin Permut, Legacy's vice president and chief population health officer, told The Oregonian the health system is seeking a "fair, reasonable increase" in a new two-year contract. Legacy has not disclosed how much more it is asking UnitedHealthcare to pay.

UnitedHealthcare officials declined to discuss the rates under negotiation but told The Oregonian that talks are continuing ahead of the Sept. 30 deadline. Spokesperson Catherine Farrell said the insurer's top priority is reaching an agreement that is affordable for consumers and employers while maintaining uninterrupted access to Legacy's hospitals and providers.

Legacy leaders said they issued the termination notice to prevent the contract from automatically renewing at current rates while negotiations continue. For patients, nothing changes yet.

Patients receiving cancer treatment or pregnancy-related care could temporarily continue seeing Legacy providers at in-network rates with UnitedHealthcare's approval if the contract does end, according to Permut. UnitedHealthcare members could also still go to any Legacy facility for emergency care.

UnitedHealthcare is Legacy's second-largest payer, behind Regence BlueCross BlueShield of Oregon. Earlier in 2026, Legacy briefly went out of network with Regence after the two sides failed to agree on a new contract. That monthlong standoff put roughly 150,000 Regence members in limbo before the sides reached a deal in May.

During that Regence dispute, Legacy Silverton and clinics in Silverton, Molalla, Keizer, Mount Angel and Woodburn also operated under a separate contract and were not affected.

If talks with UnitedHealthcare fail, affected members who use Legacy's Portland-area hospitals and specialized services would face higher out-of-network costs starting Oct. 1.