Facing mounting economic pressures, independently owned Willamette Falls Hospital in Oregon City, Ore., has announced intentions to merge with the states largest health system, Providence Health & Services.
Leaders at the two not-for-profit organizations announced this week they had signed a letter of intent to merge, following a due diligence period that is expected to end within 90 days. Financial terms of the deal have not been disclosed. Providence plans to offer employment to all 750 Willamette Falls employees, spokesman Gary Walker said.
Willamette Falls President and Chief Executive Officer Russ Reinhard said in a written release that the merger would allow the hospital to grow, expand its services, and recruit new physicians in Clackamas County. The hospital would join a group of three other hospitals in the Portland, Ore., metropolitan area already owned by Providence. -- by Joe Carlson