1775 Thompson Rd, Coos Bay, Oregon 97420
(541) 269-8111
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New executive leadership is committed to keeping Bay Area Hospital open for our community and building a more vigorous financial and operational turnaround plan. We are also working at an escalated pace to make thoughtful changes to save our community hospital. All options are under consideration and our commitment to remaining a not-for-profit hospital is unchanged.
We’re sharing a 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 are working closely with local partners, community leaders and stakeholders, and the state to create a local solution for improving the hospital’s financial performance. All options are being carefully considered with a renewed approach.
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.
What are the priorities for the hospital now?
To bring Bay Area Hospital out of its current financial challenges and keep delivering care for our community and Oregon’s South Coast, we’ve identified the top three priorities driving all decisions: 1) Save the Hospital, 2) Find a Local Solution, if possible, and 3) Financial Sustainability.
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.
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 jobs be impacted at the hospital?
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. In response to the public’s requests, we are now posting full meeting packets, once prepared, to our website as well. 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: On July 1, 2025, four new members joined the Bay Area Hospital District Board of Directors. These new directors bring fresh perspectives and a shared commitment to the hospital’s future. They join two long-standing board members, forming a unified and collaborative governance team.
Together, the full board is aligned in a new strategic direction with one clear and urgent goal: to save the hospital. Every viable option is being explored to stabilize operations and ensure long-term sustainability. As part of this effort, the Board appointed a new Interim CEO, Kelly Morgan, on July 22, 2025. He is joined by a new Interim CFO, Doug Dickson, with extensive experience in hospital turnarounds. Alongside the rest of the hospital’s executive team, they are focused on a comprehensive analysis of the organization’s financial operations and the implementation of an accelerated turnaround plan. The urgency is real. In the last fiscal year, which ended June 30, 2025, Bay Area Hospital reported a loss of $24 million. This level of financial strain is not sustainable, and decisive action is underway.
FACT: 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.
We can ask the bank for more time to repay our loan.
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 they do not want to close a community hospital. They have asked us to provide an updated financial plan to change the financial performance of the hospital quickly, and will hold us accountable to delivering on those plans.
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: 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. 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.
8.8.2025 BAH and Quorum Health End Letter of Intent
On August 8, 2025 Bay Area Hospital announced the termination of the Letter of Intent with Quorom Health. Read the media release.
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.
Leadership has three primary goals: 1) save the hospital, 2) secure a local solution, if possible, and 3) make the hospital financially sustainable. The path we face will have challenges, and changes are coming. But, having reliable and accessible healthcare in our community is essential to the people who live here and the greater economy of Oregon’s south coast. Change is sometimes necessary to adapt, grow, and build a stronger future.
Our commitment remains the same through it all—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
