1775 Thompson Rd, Coos Bay, Oregon 97420
(541) 269-8111
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In response to the local community’s proposed option presented by the UFCW, Bay Area Hospital would like to share a letter to the community with our response to this proposal.
We’re sharing a brand new report from the Hospital Association of Oregon which underscores financial challenges facing Oregon’s hospitals-reinforcing the importance of Bay Area Hospital’s partnership exploration.
We have a solution in place for ensuring the financial sustainability of Bay Area Hospital. We’ve signed a non-binding Letter of Intent with Quorum Health. This will allow us to retain local leadership while benefiting from financial support, recruitment expertise, and service expansion. We are focused on completing this period of due diligence, which will end with signing a Definitive Agreement.
We are working with Oregon legislators to dedicate additional funding through Medicaid to rural hospitals like Bay Area Hospital that are excluded from the state’s existing policy and highly dependent on Medicare and Medicaid. We are communicating with the Governor’s office, the Hospital Association of Oregon, and state legislators about relief funding for Bay Area Hospital.
Today, we continue to focus on providing outstanding care to our patients while we take steps to strengthen financial performance. Inflationary pressures and the competitive healthcare worker job market continue to increase expenses at double-digit rates while Medicare and Medicaid offer less than 3% increases.
Why is the hospital doing this now?
The healthcare industry is constantly evolving, and planning ahead is key to surviving and growing for the community you serve. Forming strategic partnerships or affiliations with larger health care organizations can offer independent community hospitals opportunities to access resources, expertise and economies of scale while preserving their local identity.
Are other Oregon hospitals facing the same challenges?
Yes. Bay Area Hospital is not alone. According to a new report from the Hospital Association of Oregon, about half of Oregon’s hospitals are losing money. More than two-thirds lack sufficient resources to sustain essential patient services and 70% are struggling to make ends meet – operating with margins below 5%, indicating significant financial challenges.
Between 2020 and 2024, hospital payroll and supply costs soared by over 40%, while Medicaid and Medicare reimbursed hospitals at just 56 cents and 82 cents respectively per dollar spent. The report also points to record-setting patient demand at Oregon hospitals, with more than 1.5 million emergency department visits in 2024 – the highest number ever recorded – further emphasizing the need for sustainable solutions.
What will an affiliation or partnership look like?
We are currently in the due diligence period after the Board of Directors voted on December 10, allowing us to enter a non-binding Letter of Intent with Quorum Health. At this stage, the details of what the potential partnership will look like are under negotiation. We have also reserved the right to remain an independent hospital should we find no options that best support our hospital and the needs of our community.
Who are the organizations you approached to discuss potential partnerships?
After many months of research and evaluation of our options, a partnership was identified as the best path forward to maintain and expand services. The formal partnership exploration included approaching over 20 organizations representing a diverse group of potential local and regional partners, including academic medical centers, faith-based systems, investor-owned operators, and secular nonprofit health systems.
Who will make the final decisions about partnership opportunities?
The Bay Area Hospital District Board of Directors will have to vote on and approve any changes. Our bylaws state that the Board has the authority to approve major decisions, including sales or leases. However, we are fully committed to a transparent process, and understanding input from our community – clinical leaders, frontline caregivers and support teams to patients, elected officials and business owners – is also of utmost importance. A community-wide vote is not required.
How will this impact jobs at the hospital?
We are not making any staffing changes as part of the exploration process. Our physicians, nurses, frontline caregivers and support teams are the lifeblood of Bay Area Hospital. Nothing is changing now, and any decisions impacting the future of our hospital will be to enhance and build on the strong foundation we’ve established.
What is the local "Shared Responsibility Plan"?
Bay Area Hospital has issued/is issuing its own letter to state legislators and our community, joining Curry Health Network, Southern Coos Health District & Hospital, and Senator David Brock Smith in opposing the United Food and Commercial Workers Local 555 “Shared Responsibility Plan.”
Across the board, local leaders agree on the plan’s major flaws, including:
Read the letters and statements of support here:
FACT: Bay Area Hospital’s monthly Board, Finance Committee and Patient Quality Safety Committee meetings are open to the public. All meeting agendas and minutes are posted on the hospital’s website, along with monthly audited financials, budgets and a strategic plan. We regularly share updates on our Facebook page, including sharing meeting dates in advance, and maintain a dedicated webpage outlining our exploration process. Information has been shared via social media, community newspapers, TV media, radio interviews, board presentations and community group presentations as well.
FACT: Bay Area Hospital leadership cut losses by nearly $60 million over two years, boosted productivity, reduced expenses and set patient volume records despite industry-wide challenges. This is not mismanagement; it’s the reality for many independent hospitals struggling with low reimbursement rates and rising costs.
FACT: The Board spent nearly two years evaluating all possible solutions, including tax levies, legislative support and alternative financing. A partnership was identified as the best path forward to maintain and expand services. The formal partnership exploration included approaching over 20 organizations representing a diverse group of potential local and regional partners, including academic medical centers, faith-based systems, investor-owned operators, and secular nonprofit health systems.
FACT: Bay Area Hospital management and members of the Board met with community leaders from organizations interested in partnering with Bay Area Hospital to form a local health system. The presentation outlined a potential organizational structure that would allow community entities to come together. At the time of the presentation, the financial details, clear terms, and a timeline were not available. As the Board evaluated the likely timeline to build the local system, they felt that our financial problems were too urgent to wait. Given the different organizational structures, multiple municipalities, regulatory considerations, and other approvals this would take many months.
FACT: Quorum Health has committed to offering employment to substantially all active employees who meet their screening and hiring criteria. We should expect that some jobs may be lost. The goal is to preserve jobs, not eliminate them. A stronger financial position under this partnership would likely help maintain or even expand staffing, rather than force layoffs.
FACT: Our bylaws say the Board has the authority to approve major decisions, including leases or sales. A community-wide vote is not required. The CFO and Board have been clear on this point from the start.
FACT: Quorum Health is focused on growing rural health care, not eliminating it. Under the proposed agreement, Quorum would keep core services in place, invest in capital improvements and support local jobs rather than dismantling assets. The goal is to preserve and potentially expand services.
FACT: Bay Area Hospital remains dedicated to providing care for all patients, regardless of their ability to pay, and Quorum Health has committed to continuing the hospital’s charity care policy. Any partnership agreement would continue to honor this commitment, and Quorum Health has a history of serving diverse patient populations in rural settings.
FACT: Quorum Health’s hospital in Springfield, McKenzie-Willamette Medical Center, has a 4-star CMS rating – evidence that strong outcomes can continue and improve under their model. The planned partnership also aims to bolster recruitment and retention of quality providers.
FACT: Quorum Health’s prior voluntary restructuring was a proactive measure to reduce debt and reorganize. Since emerging from restructuring, it has improved operations, acquired additional facilities, and maintained strong commitments to rural hospitals. Its focus aligns with Bay Area Hospital’s need for sustainable investment.
FACT: Bay Area Hospital will have a local voice and remain involved in key decisions. The governing board will continue to include community members. One reason Quorum Health was appealing is that, as a smaller system, it can provide the attention and resources we need while respecting our community’s identity.
FACT: Bay Area Hospital is in default on its bank loan and we have already asked for extensions. The bank is allowing us additional time right now because we have clear evidence of a solution to our financial difficulties – our potential partnership with Quorum Health. If we default on the loan, the bank could shut down the hospital. Coos Bay cannot afford to have Bay Area Hospital close, not only for the much-needed health care it provides, but also for the $356 million yearly economic impact it has on the community and 1,100 jobs it offers.
04.24.2025 A Letter to the Community about the UFCW's Proposed Plan
Bay Area Hospital’s written response to the local community’s proposed option presented by the UFCW.
03.31.2025: Partnership Negotiations Extended
Bay Area Hospital and Quorum Health are continuing negotiations beyond the previous goal of March 31, 2025, to reach a definitive agreement. The nonbinding Letter of Intent remains in place as both parties work to complete a comprehensive review of regulatory and financial considerations. Read our full media release here.
We understand the importance of moving quickly – especially given our financial situation – but also know how critical it is to take the time to make informed, long-term decisions for our hospital and community.
We remain committed to transparency and will continue to share updates here as this process continues.
03.03.2025: South Coast Hospitals generate $555 million in economic activity
Read our news release, done in partnership with the Hospital Association of Oregon.
It accounts for their findings from a new economic impact study that shares the economic impact of hospitals across the state of Oregon. Specifically, hospitals on Oregon’s South Coast generate $555 million in economic activity in Douglas, Curry, and Coos counties and help create more than 3,000 jobs in the region.
02.18.2025: The World News guest column by Troy Cribbins, Board Chairman
Read our Board Chair’s Opinion Guest Column:
Securing Bay Area Hospital’s Future by Troy Cribbins, Chair of the Bay Area Hospital District Board of Directors.
02.10.2025: Senator David Brock Smith introduces $10M funding bill for Hospital
We’re incredibly grateful to State Senator David Brock Smith for introducing Senate Bill 1000 that would appropriate $10 million in state funding for Bay Area Hospital. Sen. Brock Smith represents our adjoining communities in Curry County and parts of Coos County. He understands the importance of regional health care. Please read on for a special message directly from Sen. Brock Smith, and we thank him for standing with us!
Bay Area Hospital and its services are critical to the South Coast and my constituents.
I have been engaged with their Board Chair and CEO for over two years and have drafted previous legislation, HB 2952, in the 2023 Legislative Session to attempt to assist with some of the issues facing Bay Area and a number of rural hospitals.
I have not been approached nor have I spoken to UFCW, and as Vice Chair of the Oregon Legislative Coastal Caucus, to my knowledge they have not reached out for a meeting to come before us.
I feel it is completely disingenuous of the UFCW to come in at the eleventh hour, having no discussion with the Board who has been duly elected by the residents of the District and have been working on this critical issue for years.
Bay Area’s Board has vetted all options exhaustively, and for UFCW to come in; again at the 11th hour, with the union’s plan to add additional taxes to our residents of approximately $5.00 per $1,000 of assessed value, with again no conversations with the Board, or residents and a looming deadline with a May ballot being weeks away, is dishonest and unrealistic.
I find Mr. Selvaggio politicizing our healthcare services crisis from Tigard shameful, and again, our duly elected Board members; to which he tried to recall many of last year and failed miserably, have been and continue to be dedicated to saving the hospital and the critical services to our residents on the South coast.
Best,
David Brock Smith
Oregon State Senator
Senate District #1
Curry, Coos & Douglas Counties
“Southwest Oregon’s Fish, Farm & Forestry District”
12.12.2024: Bay Area Hospital Takes Next Step in Securing Future with Quorum Health
COOS BAY, Ore. (Dec. 11, 2024) – Bay Area Hospital announced it has entered into a non-binding letter of intent with a subsidiary of Quorum Health following a vote Dec. 10 by the Bay Area Hospital District Board of Directors to authorize the signing. This marks a significant milestone in the hospital’s strategic planning process. The decision is based on a comprehensive review of potential options and the board’s deep commitment to ensuring the hospital’s long-term success for Oregon’s South Coast community.
“Bay Area Hospital was founded through collaboration, and we’re building on that history to secure a future where our community has access to the best healthcare possible,” said Bay Area Hospital District Board Chair Troy Cribbins. “Exploring a formal partnership with Quorum Health will allow us to achieve this vision by stabilizing and growing our services, supporting our team and investing in the care we provide. We’re proud to take this step to build on Bay Area Hospital’s 50-year legacy of community-centered care.”
The non-binding letter of intent signals mutual interest in moving forward. The organizations now enter a period of exclusive negotiation, due diligence, and transition planning. The transaction is anticipated to be complete by the end of the second quarter of 2025, pending agreement on final terms, satisfaction of customary closing conditions and receipt of all necessary regulatory approvals.
“We are confident Quorum Health’s support will benefit our physicians and staff, meet the evolving needs of our patients and help us serve our community for generations to come,” said Bay Area Hospital President and CEO Brian Moore. “We’ve worked hard to turn things around and position Bay Area Hospital for a strong future, and we believe partnering with Quorum Health is the right next step.”
Headquartered in Brentwood, Tennessee, Quorum Health operates general acute care hospitals and outpatient services across the country. The organization serves many rural and mid-sized communities with an existing presence in Springfield, Oregon. Though terms of a definitive agreement are not yet complete, Quorum Health has initially agreed to maintain core services for at least 10 years; retain employees in good standing with existing pay, title and seniority; ensure local representation on the hospital’s governing board; and adopt existing charity care policies.
In June of this year, Bay Area Hospital retained leading industry advisors specializing in hospital mergers to help guide a structured process to identify potential partners. The hospital board, hospital leadership team and physicians from the hospital’s medical staff, worked closely with the advisors in a comprehensive, multi-month exploration process. The evaluation involved in-person meetings at Bay Area Hospital and at potential partners’ corporate offices as well as visits to their local hospitals and a thorough analysis of written proposals.
Building on last year’s progress toward a financial turnaround, Bay Area Hospital is taking a proactive approach to ensure long-term stability and continued excellence in patient care. The impact of the pandemic, including disruption of services, high cost of temporary labor, increased operational and supply expenses, and falling insurance reimbursements, have continued to negatively impact the financial performance of hospitals around the country and Bay Area is no exception.
Bay Area was able to reduce operating losses by $54 million between fiscal years 2022 and 2024 and increase revenues by over 27.6% during the same period to reach break-even following Covid-19 losses. However, health care industry challenges require more than local efforts alone, and partnering with Quorum Health will offer the resources and support needed to continue providing and investing in quality care.
For more information, please visit https://bayareahospital.org/here-for-good
10.23.2024: Evaluating Proposals from Potential Partners
Following a careful and thorough review, the Bay Area Hospital District Board of Directors selected finalists at the September 10 board meeting from proposals submitted by potential partners. Our board of directors is now evaluating these options to determine how or if they are a good fit.
First, we have conducted extensive community and internal team member surveys, the results of which have provided us top potential partnership priorities – continuation of high-quality services, job security, local management and financial stability. Secondly, we identified a set of important criteria to help guide our evaluations. This will ensure all critical factors are considered and provide a framework to compare potential partners. The criteria includes:
Community Health Care Implications
Partner Characteristics
Commercial Strength
Operating and Financial Statistics
Transaction Features
Subjective Criteria
No final decisions have been made, and the board can still decide to remain independent at any time. The board has simply chosen to continue evaluating the best options available to us. We’re committed to transparency and will keep the community informed throughout this process. Stay tuned for updates as we continue to evaluate the best path forward for Bay Area Hospital.
09.10.2024: We’re Making Progress – Recap of September 10, 2024 Board of Directors Meeting
Following a careful and thorough review, the Bay Area Hospital District Board of Directors has selected finalists from proposals submitted as part of our partnership exploration process. No final decisions have been made, and the board can still decide to remain independent at any time. The board has simply chosen to continue evaluating the best options available to us.
Due to confidentiality agreements, we are not able to disclose the names of finalists at this time. We are committed to sharing more details as soon as we can, and we will continue to keep the community informed at each stage of the process. In the coming weeks, the selected finalists will visit Bay Area Hospital, and then our leadership team and board will conduct site visits to their facilities. We are focused on finding the best path forward for our hospital and for the health and well-being of the South Coast community.
08.2024: Survey Results – What Our Community Values Most
We recently conducted a survey to gather feedback on a potential partnership for Bay Area Hospital. The results are in, and we had almost 800 responses from community members, staff and physicians. Thank you to everyone who participated! We take your feedback seriously and the following are key takeaways from the survey.
Many respondents indicated they saw no benefit in a potential partnership. However, 64% indicated they did not want to stay independent if it meant a reduction in services. We have some important decision to make in the next few weeks and truly value this type of feedback. The survey results were presented to the Bay Area Hospital District Board of Directors at their Aug. 20, 2024, meeting. The board will make the ultimate decision on whether to remain independent or join a larger health system in the coming months.
Currently, our outside experts are helping us gather information from interested potential partners. Next steps will include reviewing proposals and carefully weighing what each potential partner offers against our needs and priorities. If the hospital board decides to move forward, they will continue their thorough evaluation, which includes site visits to our facility and to potential partners’ facilities. As we continue to explore options, your priorities and concerns will be central to the decision-making process. Thank you for your continued support and for helping us shape the future of Bay Area Hospital.
07.09.2024: Recap of Public Input Session at July 9, 2024 Board of Directors Meeting
To our Coos County community:
Thank you for giving us your time, attention, and valuable perspectives this week as we discussed our hospital ‘s future. As part of the Bay Area Hospital District ‘s monthly Board of Directors ‘ meeting July 9, we hosted a public session to hear from community members about potentially partnering with or becoming part of a larger health care system.
We also heard from many session participants about other concerns or challenges, for example our electronic health record system, cost saving measures, board governance and workforce issues, to name a few. These are all complicated and interwoven aspects of our hospital ‘s journey to a more stable future, and we are working hard to address them while keeping our community ‘s values and that of our hospital front and center.
The feedback gathered this week is important and valid – recommendations we will return to often as we continue our exploration process and build a framework by which any potential partner is assessed.
Let me assure you, no decisions have been made at this time.
One thing is certain: your voices are crucial in shaping the future of our hospital. We are committed to keeping the community informed and involved every step of the way. We remain dedicated to our employees and the health of the community now and well into the future. We ‘re here for good.
Thank you for your continued support and engagement.
Please check this dedicated web page for more and continually updated information at www.bayareahospital.org/hereforgood.
Troy Cribbins
Board Chairman
Bay Area Hospital District Board of Directors
Brian Moore
President and CEO
Bay Area Hospital District Board of Directors
Having reliable, accessible healthcare in our community is essential and we know that change can feel unsettling. But change is sometimes necessary to adapt, grow, and build a stronger future.
Through it all, our commitment remains the same—ensuring quality care for those who rely on us.
We want and value your feedback. Submit your questions below and check back for regular updates. Send questions to hereforgood@bayareahospital.org
