The Oregon Health Authority has now conditionally approved Samaritan Health Services’ affiliation with MultiCare Health System. The approval, however, comes with requirements intended to protect health care services in the communities Samaritan serves.
The 43-page report was issued on August 24th and outlines OHA’s conditions.
(Photo: Oregon Health Authority/Portland)
Samaritan and MultiCare must maintain existing hospital and non-hospital services for five years following the transaction. MultiCare is not allowed to make any significant reductions in current service levels at any of the locations.
If Samaritan and MultiCare do feel a need to make a service reduction, they are required to notify OHA for approval. This gives state regulators continued oversight after the affiliation is complete.
In the report, the approval also comes with significant investment requirements. MultiCare has committed to investing $700 million in Samaritan over 10 years. These include investments in facilities, technology, clinician recruitment, and expanded access to care.
OHA is requiring at least $300 million of that investment to be allocated during the first five years, regardless of Samaritan’s financial performance. Samaritan’s operating margins must also be reinvested in the Samaritan community during those first five years.
“Together, we can build on the strengths of both organizations and create new opportunities to improve access and serve patients and communities across the Pacific Northwest,” said Florence Chang, president of MultiCare.
Samaritan and MultiCare will continue operating independently while the remaining regulatory, legal, and administrative steps are being completed. The organizations are working toward closing the transaction in the fourth quarter of 2026, and there will be a phased integration process.
OHA’s approval now puts some concrete requirements behind promises of continuity, and it also creates state oversight in order to make sure the promises remain intact.
This article was written by Jesse Grant, a contributor to The Corvallis Inquirer. Feel free to send us your stories or articles to publish at: editor@corvallisnow.com
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