Santiam Hospital has been turning a profit in recent years even as its leaders warn the Stayton facility faces imminent collapse, according to a Lund Report investigation published July 23.
The finding undercuts the emergency framing that Salem Health and Santiam are using to fast-track a merger that would reshape hospital access across Marion County.
Oregon Attorney General Dan Rayfield will take public testimony on the proposed deal at a virtual hearing August 5.
The emergency claim
In a joint state regulatory filing reported by Salem Reporter on July 13, Salem Health and Santiam described the hospital's financial situation as "an acute emergency." The filing argued that accelerated state approval, bypassing Oregon's standard merger review process, was the only path to keeping Santiam open, claiming the hospital could close by fall 2026 without the deal.
The two organizations withdrew their initial application, which had been moving through the standard review process, and replaced it with a request for emergency approval. They asked regulators to approve the acquisition by Friday, August 1.
What the Lund Report found
Reporters Nick Budnick and Mike Francis found that Santiam's own financial reports show what the Lund Report described as "generally solid" finances in recent years, including narrow profits.
Hospital leaders point to looming electronic health records upgrade costs as the expense that could tip the balance, arguing that small independent hospitals face steep barriers to modernizing EHR systems on their own.
Santiam is one of the few independent community hospitals remaining in Oregon. It already sends many patients to Salem Hospital for higher-level care, meaning the merger would formalize a relationship that shapes how thousands of Marion County residents access healthcare.
How residents can weigh in
Salem Health and Santiam have characterized the AG's scheduling of a public forum as an unfair delay, according to the Statesman Journal.
Under Oregon law, the attorney general must give written approval before any hospital affiliation is finalized. Rayfield's office announced Wednesday, July 22, that it will hold the virtual hearing and accept written comments.
The hearing is Wednesday, August 5, at 5 p.m. via Zoom. Residents can register through the Oregon DOJ's webinar page. Written comments will be accepted until 5 p.m. Friday, August 7, at [email protected].
