MultiCare and Samaritan Health Services Announce Affiliation, Creating $7.5 Billion Healthcare System

MultiCare Health System and Samaritan Health Services have approved an affiliation that will create an 18-hospital system with more than $7.5 billion in combined revenues. The deal, expected to close in mid-2026, marks MultiCare's expansion into Oregon and strengthens its position in the Pacific Northwest healthcare market.

Affiliation Details and Strategic Implications

The boards of both nonprofit organizations have given their approval for the affiliation, which will bring Samaritan's five community hospitals, health plans, and clinics under the MultiCare umbrella. This strategic move gives Tacoma, Washington-based MultiCare its first acute care presence in Oregon, specifically in Benton, Lincoln, and Linn counties.

Bill Robertson, CEO of MultiCare, emphasized the alignment between the two organizations: "MultiCare and Samaritan are closely aligned in our mission, vision and values, making us ideal partners as we strengthen our networks across our service regions."

Investment and Expansion Plans

As part of the affiliation agreement, MultiCare has committed to a 10-year investment plan focused on modernizing and expanding Samaritan's services. Key components of this plan include:

1. Modernizing Samaritan's facilities
2. Expanding inpatient capacity at Good Samaritan Regional Medical Center
3. Adopting new technologies, including telehealth capabilities
4. Growing primary and specialty care services
5. Extending MultiCare's behavioral health services into Samaritan's service area

These initiatives aim to increase care quality and access while potentially lowering healthcare costs in the region.

Financial Performance and Operational Impact

The affiliation comes at a time when both organizations have faced financial challenges. In 2024, MultiCare reported total operating revenue of $5.9 billion but experienced a $116.5 million operating loss (-2.0% operating margin). Samaritan Health Services, with over $1.7 billion in revenue, reported a $93.6 million operating loss (-0.5% operating loss) for the same year.

Despite these financial pressures, the organizations assert that there will be no immediate changes for Samaritan's patients, plan members, or employees as the affiliation process moves forward. Samaritan will maintain local governance and community-based operations while benefiting from MultiCare's resources and expertise.

Marty Cahill, President and CEO of Samaritan, stated, "This affiliation represents an important step in securing the future of nonprofit health care in our region. Our commitment has always been to remain a community-based, mission-driven organization, and this partnership strengthens that promise for decades to come."

The formal affiliation agreement is expected to be signed in the coming weeks, with the transaction anticipated to close in mid-2026, subject to regulatory approvals.