Following a series of discussions, Salem Health and OHSU have decided not to enter into a new partnership agreement. Salem Health will begin efforts to return to its independent Salem Health brand.
The organizations recently agreed that specific aspects of the original joint management agreement were not serving the two organizations optimally, and replaced their original agreement with a transition agreement. They then began renegotiations to determine if a differently-structured, ongoing partnership was of mutual interest.
“While we will no longer pursue a formal, integrated partnership, we will continue to collaborate on existing programs and explore additional collaborations and joint ventures that are determined mutually beneficial,” said Mitch Wasden, CEO of OHSU Healthcare.
“Salem Health has had a long-standing relationship with OHSU and we look forward to future conversations around how we can work together to improve health care for our communities,” said Cheryl Wolfe, President and CEO of Salem Health.
Salem Health and OHSU were the founding partners of the OHSU Partners system. Together, the two organizations created a management company, OHSU Partners, LLC, jointly governed by the respective boards of directors for the organizations. The organizations delegated responsibility to this management company to oversee Salem Health and OHSU Healthcare as an integrated health system and single economic entity.
In May, Salem Health transferred its membership interest in joint governance of OHSU Partners, LLC to OHSU. OHSU assumed direction of the work previously managed by OHSU Partners, LLC.
Tuality Healthcare was added as an OHSU Partner in February 2016, but their contractual agreement is directly with OHSU and is not impacted by this decision.