State OKs Willamette Falls Hospital merger

Willamette Falls Hospital on Wednesday received state approval to proceed with its planned merger with Providence Health & Services.

The 48-year-old Oregon City hospital will change its name to Providence Willamette Falls Medical Center and its 800 workers will become employees of Providence on Oct. 1.

No money will change hands when the larger nonprofit incorporates the new hospital.

The new arrangement should benefit the Oregon City hospital financially, while expanding Providence’s reach into a growing community.

The 91-bed Willamette Falls Hospital ended its 2007-2008 fiscal year in the black, with a $650,000 operating gain on $91.5 million in revenue, but it reported operating losses for the four previous years.

Those losses, and continuing financial pressure, prompted an exploration of several possible mergers and partnerships. The Willamette Falls hospital board eventually settled on Providence in May.  - Portland Business Journal