Nonprofit health systems MultiCare and Samaritan Health Services officially merged on Sunday, following approval from state regulators. This consolidation marks a significant step in addressing the evolving healthcare system in the region, particularly in Oregon.
The deal sees Tacoma, Washington-based MultiCare invest $700 million over 10 years into Samaritan’s five hospitals and network of clinics in Oregon. Samaritan will retain its name and local leadership, while its executives now integrate into MultiCare’s governance structure.
“MultiCare brings expertise and resources that will help us meet the changing healthcare needs of our region,” Marty Cahill, Samaritan president and CEO, said in a statement. Cahill, who will also lead MultiCare’s new Oregon Coast to Cascades division, emphasized the merger’s role in supporting clinicians and employees in their daily work. “We move forward with a deep commitment to our communities and confidence in what we can accomplish together,” Cahill said.
The merger, first announced last fall, aimed to address Samaritan’s financial challenges, including rising costs, lower reimbursement rates, and workforce shortages. In August, Samaritan announced it had received approval on the deal from the Oregon Health Authority and was working toward an Oct. 1 closing date. However, the closing date was pushed back a month, with final regulatory approvals for Samaritan’s health plans coming in October, according to the Lincoln Chronicle.
MultiCare, which previously operated 13 hospitals, now expands its reach into Oregon. “For patients and families, the promise of this affiliation is better access to the care they need,” Florence Chang, president of MultiCare, said in the announcement. Nonprofit hospitals are being hit especially hard as federal funding cuts from the One Big Beautiful Bill Act loom. Medicaid-dependent and low-rated nonprofits could especially feel the brunt of incoming financial pressures, according to Fitch Ratings. And hospitals writ large are feeling a strain as the uninsured population grows.
