Providence may acquire Willamette Falls Hospital
Portland Business Journal
Providence Health & Services Oregon, the state’s largest hospital system, may acquire Willamette Falls Hospital, a 47-year-old community-based hospital in Oregon City.
Providence and Willamette Falls Hospital have signed a letter of intent and will now enter a 90-day due diligence period.
If all proceeds as planned, the deal will close early next year. Terms were not announced.
Willamette Falls Hospital would join Providence’s Portland service area, which includes three Portland-area hospitals.
Willamette Falls employs 750 people. As part of the final agreement Providence would offer employment to all Willamette Falls employees.
“Our board looked at several possibilities for securing our future — including maintaining the status quo as an independent hospital,” said Willamette Falls’ President and CEO Russ Reinhard. “We feel that Providence truly understands our commitment to this community and will not only preserve the relationships that we’ve nurtured for nearly six decades, but will enhance them.”
The 91-bed Willamette Falls Hospital has struggled financially in recent years, although it ended its most recent year in the black. Unaudited financials for 2007- 2008 show the hospital had an operating gain of $650,000 on $91.5 million in revenue. In 2006-2007 it reported an operating loss of $135,000 on revenue of $88.9 million, and it reported operational losses in the three years prior.
Reinhard said the deal would allow the hospital to expand services and recruit new physicians.
Seattle-based Providence Health & Services is a nonprofit organization that operates in Alaska, Washington, Montana, Oregon and California. The system runs 26 acute care medical centers and hospitals and a sizable network of outpatient clinics.
Latest News |
Most Viewed Stories |
Most Emailed Stories |
