PORT ANGELES — Three Clallam County Hospital District 2 commissioners were sworn into office during the Olympic Medical Center board of commissioners meeting.
Gerald Stephanz, in Position 1, Carleen Bensen, in Position 4 and Penney Sanders, in Position 7, were sworn in Wednesday after they won their seats in the Nov. 4 general election.
Stephanz and Bensen are new to the board. Sanders was appointed last March to fill a vacancy created by the resignation of Phyllis Bernard, and she ran to fill the remainder of Bernard’s term that expires Dec. 31, 2027.
Surveys
Interim CEO Mark Gregson said the results of two recent special surveys by the accrediting agency DNV were “excellent.” He said OMC anticipates a full DNV survey to occur next month.
Board members expressed concern that the DNV surveys are intended to prepare OMC for state Department of Health surveys.
However, last year the hospital’s repeated failure to pass state surveys threatened its contract with the Centers for Medicare and Medicaid Services.
If the purpose of a February 2025 visit by DNV was to make OMC ready for DOH visits, that didn’t happen, commissioner Thom Hightower said.
“They were putting us in a position months later to being slammed by CMS,” he said.
“We should be in a position of always being prepared,” commissioner Penney Sanders added.
Gregson said DNV and the DOH used different survey methods, but he understood commissioners’ concerns about the disconnect between the results.
OMC will start community outreach this month, beginning with a presentation by Dr. Evan Small, its director of emergency medicine, at the Port Angeles Business Association meeting on Tuesday.
“We are arranging for physicians to be ready to speak to the community and to make presentations an active part of the job,” Gregson said.
He encouraged groups to contact OMC if they are interested in a speaker.
Finance report
OMC is making small steps to correct its financial position, interim CFO Dennis Stillman said.
It had stayed at 29 days of cash on hand for 2025, without dipping deeper. The target is 60 days in order to meet its bond obligation.
The hospital is only making capital expenditures when absolutely necessary and has been paring down its accounts payable balance, which stood at $24.5 million at the end of November. It ended 2024 with $26 million in accounts payable.
The key to regaining financial health is managing staffing, Gregson said.
About 65 percent OMC’s costs are labor — $12 million a month in payroll.
Daily surveys of staffing needs have been central to managing that cost, he said.
“Great efficiency and great care” are not in opposition but go hand-in-hand, he said.
Meanwhile, commissioners held a moment of silence in honor of commissioner John Nutter, who died unexpectedly on Dec. 22. Nutter had served on the board since 2009.
“John was a friend and trusted colleague in our community,” board president Phil Giuntoli said. “John served in the community in many different ways, and he served it well.”
The board will begin the process of seeking Nutter’s replacement at its next meeting on Jan. 21.
Giuntoli said the board will nominate an individual and then open the field up to anyone who would like to serve.
Individuals who would like to be considered should email a one-page letter of interest and resume to giseri@olympicmedical.org. The job description can be found on the board of commissioners page.
________
Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.
