Rolla, Salem hospitals will not affiliate

Two south-central Missouri hospitals will not affiliate, according to a statement released Friday.

Phelps Health in Rolla and Salem Memorial Hospital have mutually agreed to end their affiliation discussions after a year of collaborative exploration. Throughout the past year, both organizations have engaged in thorough evaluations to determine the feasibility of establishing an affiliation that would enhance healthcare services for their communities.

The decision follows extensive efforts to identify sustainable pathways for partnership, including seeking federal and state appropriations for necessary capital improvements. Despite expressing strong support for rural healthcare and funding this project, state government did not pass a budget with this appropriation included. A Missouri Senate bill that included capital improvement projects never gained a vote in the Missouri House.

In recent months, Salem Memorial Hospital has reported improved operating margins, reflecting positive financial performance and operational efficiency. This financial upturn has bolstered the hospital’s capacity to continue delivering quality care independently, according to a statement.

“We have great respect for the team at Salem Memorial Hospital and the dedication they show their patients,” said Jason Shenefield, CEO of Phelps Health. “While the affiliation will not proceed, we are encouraged by Salem Memorial’s recent financial improvements and remain open to future collaborations that benefit our communities.”

Brooke Bollman, CEO of Salem Memorial Hospital, expressed similar sentiments. “Our discussions with Phelps Health have been constructive and grounded in a mutual desire to enhance healthcare access. Although these talks are concluding, we are proud of our recent financial progress and remain committed to serving our community with excellence.”