PORT ANGELES — Nearly 70 clinicians at Olympic Medical Center have endorsed three candidates for the hospital’s board in the Nov. 4 general election following a state Department of Health survey that found the hospital to be out of compliance and amid what they say is a pattern of being excluded from meaningful decision-making.
The group, Clallam County Clinicians, says it wants OMC to regain its reputation as a trusted, high-quality local care provider — but that goal, the group argues, can’t be achieved without genuine involvement in decisions that shape operations and governance.
The group’s message isn’t to place the entire blame on administrators but to acknowledge the shared responsibility between leadership and providers. They say collaboration among administrators, the board and medical staff is essential to strengthen both operational efficiency and quality of care. Combining oversight with clinical insights is the only way forward, they say.
OMC orthopedic surgeon Dr. Dustin Larson said clinicians have grown increasingly concerned that operations and leadership decisions are undermining patient safety and quality of care. He said physicians, nurses and other health care staff have felt pressure to “produce more with fewer tools,” citing a directive to send personnel home early if it’s determined they aren’t needed.
“The cumulative impact of all that is compromising our ability to take care of patients in the community,” Larson said. “As clinicians, we’ve kept our heads down and focused on patient care, but the risk of not speaking out has become greater than the individual risk of voicing concerns.”
Patients have noticed, clinicians say, noting an increasing number of community members seeking care elsewhere.
Further fueling clinicians’ concerns have been ongoing issues related to repeated violations that have threatened OMC’s Medicare payments.
Since February, deficiencies found by state Department of Health surveyors prompted the Centers for Medicare and Medicaid Services (CMS) to issue four termination letters stating it would end its contract with the hospital if the violations weren’t addressed.
To assist in meeting CMS compliance requirements, OMC signed a $248,000 contract with health advisory firm Chartis at the Department of Health’s recommendation.
Last week, OMC received a letter from the state Department of Health notifying the hospital that it had found 20 deficiencies — 12 repeat and eight new — during its most recent survey. OMC has until Nov. 16 to implement a correction for each.
That appeared to be at odds with an Oct. 8 announcement from OMC that it was back in CMS compliance and that an Oct. 10 termination date had been withdrawn.
It also seemed inconsistent with interim CEO Mark Gregson’s statement that “that [CMS] chapter is now closed, and we’re moving forward — stronger, compliant and ready for whatever comes next.”
Dr. Scott Kennedy, OMC’s chief medical officer, said the Oct. 17 letter addressed state-level deficiencies and did not affect the hospital’s CMS compliance status. Not correcting them could result in fines.
“We are continuing a tremendous amount of improvement work,” Kennedy said. “We take these citations seriously, and we are implementing new processes, such as care facilitation, to ensure proper documentation and adherence to policy at the point of care.”
The clinicians’ concerns come as OMC’s financial situation remains dire. The hospital lost $40 million in 2023-24, and if it continues on the same track, it will lose $16 million, interim CFO Dennis Stillman has said. It owes its vendors about $29 million.
In August, commissioners hired Gregson over the objections of clinical staff to make what it has said are the tough financial decisions that are needed to turn the hospital around. Those decisions include reducing staffing in areas where productivity is perceived to be low and considering cuts to clinical service lines.
Kennedy said hospitalists, emergency physicians and advanced practice providers were actively involved in improvement efforts and provided input on systems that affected patient care. OMC had implemented a process that involved reviewing cases at the point of care, ensuring documentation compliance and providing immediate feedback to frontline staff.
“Clinicians are shaping how the hospital addresses deficiencies,” Kennedy said. “We are meeting with physician leaders across departments, rounding through the hospital and discussing improvements in real time. They inform decisions that affect workflow, documentation and patient safety.”
Dr. Larry Gordon, an OMC hospitalist, said clinicians want to be part of high-level planning and business decisions, not just micro-level documentation issues.
“We want to be part of the solution,” he said. “Physicians are responsible for medical decision-making, but there needs to be shared accountability for business decisions and strategic planning.”
OMC is in talks with UW Medicine about a potential affiliation, which clinicians say could greatly benefit patients. Such an alliance, however, would not include funding OMC needs for badly needed capital improvements. Any significant cash infusion likely would come through a buyout from a private equity firm — a possibility that’s never been ruled out since the board began exploring potential partnerships last December.
Clinicians are against such an alliance, pointing to the hospital’s emergency room, operated by Sound Physicians, a third-party contractor partly owned by private equity firm Summit Partners. The involvement of private equity in the hospital’s operations, clinicians say, has raised additional concerns about prioritizing productivity and financial goals over patient care.
In a show of unity, the group of OMC clinicians has come together to endorse Dr. Carleen Bensen, who is running against Tara Coffin for the open Position 4 seat being vacated by Jean Hordyk; Laurie Force, who is running against incumbent Penney Sanders for the Position 7 seat; and Dr. Gerald Stephanz, who is running against incumbent board President Ann Henninger for the Position 1 seat, in the upcoming election.
There are many clinicians who support the group’s goals, Larson said, but they are reluctant to speak out publicly because of potential retaliation.
“We want OMC to be the hospital people think of first when a family member needs care,” he said. “But to do that, clinicians need to have a meaningful voice in the policies and practices that affect patient safety and care quality.”
Clallam County Clinicians’ website can be found at clallamcountyclinicians.squarespace.com. They are sponsoring a candidate forum with Bensen, Force and Stephanz from 5:30 p.m. to 8:30 p.m. today in the Raymond Carver Room at the Port Angeles Main Library, 2210 S. Peabody St.
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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.
