Salem Hospital and Oregon Health and Science University (OHSU) in Portland have announced details of the just-created management company created to oversee the new allied hospital system.

The new association is not called a “merger” but an “integrated system” of the two hospitals. It will combine the clinical enterprises of each under the guidance of the management company.

This new company’s name will be OHSU Partners.

Pending a final agreement, the management company will become operational October 1, says Sherryll Hoar, Strategic Communications Administrator for Salem Health.

CEO of the new company will be Peter Rapp, current executive director of OHSU Healthcare.  Norm Gruber, currently the president and CEO of Salem Health, will serve as president.

Both OHSU and Salem Health have also named the executives who will be responsible for executing the strategic and financial plans for their respective sites.  Salem Health’s president will be Cheryl Wolfe, currently Salem Health’s chief operating officer.  OHSU has named Cindy Grueber as interim site executive.  Cindy is currently the chief operating officer at OHSU.

The site executive at each entity will be employed by each respective organization, but will have a direct and primary reporting relationship to OHSU Partners.

The remainder of the organizations’ workforces will remain separate. Employees of Salem Health will work for Salem Health and employees of OHSU will work for OHSU.

Salary information for the executives is not yet available.  “The positions in the new company are an investment in order to create the new integrated system,” says Hoar. “Creating a new system will take exceptional talent and execution.”

Salem Hospital says that both it and OHSU have “a strong commitment to healthcare transformation in Oregon that allows us to provide better outcomes and improved access more cost effectively.  We want to do more than succeed in the new healthcare environment; we want to be active in shaping systems that truly deliver greater value to patients.  We’re both proud to be Oregon-based organizations, and feel a responsibility to our state that we think is distinct.”

The new OHSU Partners will employ a small staff to handle finance, integration, technology and strategy.  Recruitment is underway to fill those four positions.