State agency says it hopes to have decision on Samaritan Health’s merger with Multicare by late August

By MIKE FRANCIS/The Lund Report

State regulators are still evaluating the merger proposed in February by Corvallis-based Samaritan Health Services and MultiCare, the much-larger Washington-based health system but say a decision of some kind could be issued next month — if only to announce a longer review.

The merger — along with the proposed takeover by MultiCare of Samaritan’s Medicaid plan for lower-income Oregonians — has been in a holding pattern as state officials and executives exchange letters discussing details of how the merger might affect Oregonians.

The review is part of a process set up by Oregon lawmakers in 2021 to ensure major health care transactions don’t raise the cost of care or hurt patient access and employee working conditions.

Samaritan operates five hospitals as well as clinics in Lincoln, Benton and Linn counties.

The two health systems are still in what’s described as a 30-day preliminary review by the Oregon Health Authority’s health care market oversight office. The clock has been paused at least four times while the state sought additional information about how the merger would work.

On Monday, an agency spokesperson said officials expect to complete a preliminary review by the close of business Aug. 24. At that point, the agency could either opt to approve the deal or launch a more in-depth review that could involve an advisory board that includes local residents.

MultiCare officials did not respond to an email from The Lund Report, but Samaritan officials say they respect the review process and continue to cooperate.

“We have responded to every request for information and will continue to work collaboratively and transparently with state regulators as the review moves toward completion,” said Samaritan Health chief executive officer Marty Cahill in a statement. “We are encouraged by the progress made and remain hopeful that the affiliation can be completed this fall, pending final regulatory approvals.”

The health agency continues to accept public comments on the proposed transaction via email, telephone or public comment form. Only two comments, both critical, were collected and posted in July.

“Samaritan’s predicament is completely of their own making and deserves no sympathy,” wrote one former manager at the health system.

Various public officials and committees have urged the agency to approve the deal. Rep. Travis Nelson, a nurse who represents a Portland legislative district and works for the Washington Nurses Association, urged regulators to reject the proposal.

Samaritan officials haven’t been idle as the regulatory review has gone on.

In May, Samaritan’s Cahill led public town halls in Samaritan’s service area, and last month asked holders of Samaritan bonds to grant a waiver of a notice of a technical default. The notice of default was delivered last year when Samaritan’s reserves temporarily dipped below the levels specified under the bond covenants. On Tuesday, a Samaritan spokesperson said Samaritan is continuing to work with its bondholders regarding the requested waiver.

Removal of the default notice “removes meaningful impediments” to the closure of the deal, Cahill told investors on last month’s call.

According to unaudited financial reporting filed with the state, the Samaritan Health reported revenues of $324.9 million during the first quarter of 2026 and a positive margin of 2.18 percent. The results were weighed down by losses at Samaritan’s flagship hospital, Good Samaritan Regional Medical Center in Corvallis.

The Corvallis hospital lost more than $5.7 million in the first quarter for a negative margin of roughly 3.5 percent on operating revenue of more than $164 million.

The not-for-profit Samaritan Health says its five hospitals, physician clinics and health insurance plans serve about 280,000 Oregon residents in the three counties employs more than 5,000, including about 600 in Lincoln County.

Under the proposed merger, MultiCare, also a not-for-profit, promises to invest $700 million in Samaritan Health over 10 years. MultiCare operates 13 hospitals and employs more than 28,000 people, almost entirely in Washington state.

“We are confident in our application,” Cahall said in his statement to the Lund Report. “We believe this affiliation will be a meaningful win for our patients and communities – and for the State of Oregon – by strengthening the long-term sustainability of healthcare in Benton, Lincoln and Linn counties.”

• Mike Francis is an editor at large at The Lund Report and can be reached at [email protected].