Salem Health has settled its breach-of-contract lawsuit against RefleXion, a Hayward, California cancer technology company, over a $6.4 million radiation machine the health system alleged performed worse than its older equipment.

The settlement terms were not disclosed, Salem Reporter reported on Aug. 20.

Salem Health, the largest hospital system in the Willamette Valley, purchased the RefleXion machine in late 2023 after the company marketed it as a three-in-one device capable of delivering two standard radiation therapies plus a new biology-guided therapy that could treat any cancer at any stage, according to the lawsuit filed in Marion County Circuit Court in July 2025.

The machine's shortcomings became apparent within two months of use, the complaint alleged. Rather than treating any cancer at any stage, hospital staff found it could only treat bone and lung tumors. The complaint also alleged the machine delivered less precise results than older equipment and risked exposing healthy tissue to radiation.

Salem Health filed a formal complaint with RefleXion in March 2024. During a December 2024 meeting, RefleXion's director of sales admitted he had "oversold and underdelivered," the lawsuit alleged. In a January 2025 phone call, a company representative told Salem Health they had "sold (Salem Health) on a vision," according to the complaint.

Salem Health terminated the contract on Jan. 15, 2025, and requested a full $6.4 million refund on April 7, 2025, telling RefleXion it could repossess the machine at any time. RefleXion did not comply. Salem Health filed suit.

Spokeswoman Lisa Wood declined to comment when the lawsuit was filed in July 2025. No public statement from Salem Health or RefleXion about the settlement was available as of Aug. 20.

The settlement closes the case with no further court proceedings expected. It comes as Salem Health pursues a separate $61 million merger with Santiam Hospital, approved by Oregon Attorney General Dan Rayfield on Aug. 7.