UPDATED: OHA approves Samaritan, MultiCare affiliation

Samaritan Health Services announced Monday that it had received approval from the Oregon Health Authority for its proposed affiliation with MultiCare Health System, marking the most significant milestone to date in the organizations’ affiliation process.

The approval allows Samaritan and MultiCare to move forward with the remaining regulatory approvals, legal and administrative steps required to complete the transaction, Samaritan said in a statement. OHA’s approval includes conditions designed to protect access to care and strengthen healthcare in the communities. However, OHA’s

Those conditions are closely aligned with the commitments Samaritan and MultiCare outlined in their affiliation agreement and further cemented the shared commitment to the patients and communities they serve.

“This approval is an important step forward for the communities we serve,” said Marty Cahill, Samaritan president and CEO. “Our affiliation with MultiCare will provide additional resources to invest in our workforce, facilities, technology and services – and help make it easier for people to receive high-quality care close to home.”

In an announcement issued Aug. 24, OHA noted that the approval by its Health Care Market Oversight (HCMO) program comes with conditions. The deal cannot move forward unless two other state programs – OHA’s Coordinated Care Organization Form A Review program and the Oregon Department of Business and Consumer Services’ Domestic Insurer Form A Review program – also approve.

The two nonprofit health systems have proposed that MultiCare become the sole corporate member of Samaritan. In addition to giving MultiCare control of Samaritan’s hospitals and clinics, the organizations have also proposed giving MultiCare control of Samaritan’s commercial insurance operations and InterCommunity Health Network, a coordinated care organization (CCO) that is currently owned by Samaritan and facilitates Medicaid benefits in Lincoln, Benton, and Linn counites. Samaritan and MultiCare will continue to operate as independent organizations until the transaction closes. The organizations are working toward closing early in the fourth quarter of this year.

The approval does not change how patients receive care or access services, Samaritan said. Patients can continue to see their Samaritan providers, keep scheduled appointments, use Samaritan pharmacies and access their health information through MyChart. There are no planned changes, through 2027, to the health insurance plans accepted by Samaritan Health Services, or to the types of plans offered by Samaritan Health Plans.

OHA’s HCMO program examined how the proposed deal could affect Samaritan’s hospitals and clinics as well as how it could impact Oregon’s access to quality, affordable, and equitable health care. Meanwhile, OHA’s CCO Form A Review program is determining how the deal could impact InterCommunity Health Network’s financial stability and its ability to serve Oregon Medicaid members. Finally, the Oregon Department of Consumer and Business Services (DCBS) is evaluating how changing control of Samaritan’s commercial health plans could affect its financial stability and other factors.

Through the HCMO program, OHA has approved the hospital- and clinic-related portions of the deal provided that some conditions are met. OHA’s conditions are designed to hold Samaritan and MultiCare to the commitments they have made to OHA, preserve access to care, and address potential anti-competitive concerns. While a full list of OHA’s conditions can be found here, some of the conditions include:

• Requiring MultiCare to follow its commitment to invest $700 million in Samaritan facilities and services;

• Posting a public-facing version of MultiCare’s capital commitment plan on Samaritan’s website;

• Re-investing Samaritan’s operating margins into the communities that are served by Samaritan; and

• Continuing to operate Samaritan’s existing health care services at the same or similar locations and without significantly reducing current service levels.

More information about OHA’s reviews of this transaction is available on the HCMO and CCO Form A webpages dedicated to this transaction.

Samaritan will continue to be locally led and focused on the needs of the mid-Willamette Valley and central Oregon Coast, its statement said.

Samaritan and MultiCare announced their intent to affiliate in 2025 following an extensive evaluation and due diligence. The two nonprofit health systems say they share a commitment to high-quality compassionate care and healthier communities.

Once the affiliation is complete, MultiCare has committed to investing $700 million over 10 years to strengthen healthcare throughout Samaritan’s region. This investment will support expanded access to care, recruitment and retention of providers, improvements to facilities and technology, and opportunities to bring more services closer to home, Samaritan stated.

“MultiCare is honored to partner with Samaritan and support its mission and legacy of community-based care,” said Bill Robertson, CEO of MultiCare.

Florence Chang, president of MultiCare, added, “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.”

Following closing, Samaritan and MultiCare will begin a phased integration process. Teams from both organizations will work together to share expertise and identify opportunities to strengthen care delivery while maintaining operational stability.

For additional information and answers to frequently asked questions, visit  samhealth.org/Affiliation. Questions may also be sent to [email protected].