PORT ANGELES — The Olympic Medical Center board of commissioners will explore partnering with another healthcare system to ensure the hospital’s long-term viability, support its staff and providers and continue to deliver care.
Wednesday’s unanimous decision to launch a process that will consider whether a partnership or remaining independent is the right course to take was not an easy one, commissioners said. However, OMC’s dire financial straits, which it largely blames on low Medicaid reimbursement rates, gave it very little choice, they said.
“When I came onto the board, I was absolutely committed to the proposition that this was going to remain an independent public hospital,” Commissioner Phyllis Bernard said. “That’s where my heart was and where my soul was.”
“That being said, there are certain realities that the heart and soul can’t change, including 80 cents on the dollar from our No. 1 payer in a county that is aging rapidly. That is a fix that cannot be managed through.”
Like most hospitals in Washington state, OMC is losing money. It is forecast to lose $6.4 million this year; it lost $28 million in 2023 and $17.7 million in 2022.
Commissioner Jean Hordyk said that, as someone who grew up in Port Angeles, she is proud to have watched the hospital grow from one building into a system that serves as a community safety net.
“The hard part is keeping up with it all,” Hordyk said. “There are so many changes in health care and we’re trying to keep up with it and it isn’t easy to do. We aren’t giving in to anyone. We’re supporting the hospital and our employees.”
In addition to Medicare underpayment, CEO Darryl Wolfe said increased costs related to labor, equipment and pharmaceuticals have exacerbated OMC’s financial situation.
In its presentation to the board, Chicago-based health care strategy company Juniper Advisory laid out a timeline for exploring and evaluating options and potential partners. The latter might include other community hospitals; faith-based systems; academic medical centers; integrated delivery networks of healthcare providers; and nonprofit and for-profit health systems.
Juniper Advisory will begin soliciting proposals on Monday and bring them to commissioners for review at their Feb. 19 meeting, with a final decision to be made on May 7. Commissioners can decide against proceeding at any point in the process.
The board and OMC leadership identified seven key objectives for any partnership. Among them were positioning OMC as the employer, clinical partner and provider of choice; ensuring its long-term financial sustainability; enhancing its ability to recruit and retain physicians and staff; and strengthening its capacity to make investments in people, programs, facilities and technology.
Commissioner John Nutter said it is important to understand the purpose and objectives of the strategic partnership procedure.
“This is not a selection process, it is an exploration process,” he said. “No decisions have been made. We’re just seeing if there’s a better option out there. It’s what we owe to our community.”
An OMC press release about its exploration of a partnership can be found at tinyurl.com/4fbpyf2r.
More information can be found at tinyurl.com/bdhur3j7.
Commissioners will discuss progress on the exploration process at their next meeting at 6 p.m. Dec. 18 in OMC’s Linkletter Hall, 939 Caroline St. Time for public comment will be on the agenda. To view a meeting online, go to tinyurl.com/538m9sbz.
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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.
