Attorney General Dan Rayfield today approved the proposed merger between Salem Health Hospitals & Clinics and Santiam Hospital & Clinics, clearing the final regulatory hurdle for the $61 million deal to close.
“This approval came through a careful, independent legal review, as required by the Legislature,” said Attorney General Rayfield. “Oregonians deserve to know that decisions like this are made on the merits, following the process laid out by Oregon law. It’s more than a legal formality, it’s how we protect access to care for families in the Santiam Canyon and make sure a hospital that has served this community for generations can keep doing that work.”
The merger, first announced in January 2026, will bring Santiam Hospital & Clinics – a 40-bed, 73-year-old hospital serving the Santiam Canyon – under the umbrella of Salem Health, the largest hospital system in the Willamette Valley. Santiam had warned regulators it faced imminent risk of insolvency, citing declining profits and the need to replace its electronic health records system.
The Oregon Health Authority granted an emergency exemption from the standard Health Care Market Oversight review process on July 31, citing an urgent threat to health care access in the region. Under Oregon law, the deal could not close without the Attorney General’s approval.
“Given the circumstances, Oregon Department of Justice staff worked swiftly, but diligently, to examine this proposed merger,” added AG Rayfield. “Professional staff at the ODOJ are dedicated to protecting Oregonians and their families and upholding the law – free of outside pressure.”
Ahead of making the final decision, the Oregon Department of Justice held a public hearing on Wednesday, August 5, to gather community input YouTube (Opens in a new tab/window) on the proposed merger. The virtual hearing drew broad support, with testimony from about two dozen speakers. ODOJ also accepted written public comment through August 7.
