1775 Thompson Rd, Coos Bay, Oregon 97420

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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.

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”

Website: http://www.oregonlegislature.gov/smithd

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

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.

How will proposals be evaluated?

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

  • How will the partnership impact medical quality and the breadth of services offered?
  • Will the partner be effective in recruiting and retaining physicians
  • Can they deliver cost-effective care?

Partner Characteristics

  • Does the potential partner have the size and scale needed to thrive in today’s health care environment?
  • What is their management expertise, particularly in using technology, data and standardizing best practices?

Commercial Strength

  • What is the financial stability of the potential partner?
  • Can they effectively manage the transaction process?

Operating and Financial Statistics

  • How many facilities do they operate, and what is their geographic reach?
  • What are their financial metrics, such as net patient revenues and capital spending ratios?

Transaction Features

  • How will the partnership affect our employees and medical staff?
  • Will current services be continued or expanded?

Subjective Criteria

  • Does the potential partner share our culture and mission?
  • Is there a strategic fit between our hospital and the potential partner?
  • What kind of operating support and management expertise do they offer?

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.

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.

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.

  • Top priorities: improving quality and providing safe care, expanding clinical services and keeping care local, recruiting and retaining staff and providers, and ensuring financial sustainability.
  • Perceived benefits: ensuring financial sustainability; growing service lines and improving access to care; and improving operations, technology or culture.
  • Main concerns: eliminating jobs, losing local control and becoming too profit focused.

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.

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 heard from many of you and appreciate the candid feedback. Here ‘s what we heard expressed most consistently:
  • Our hospital has served Coos County well for many years, but community members are concerned a potential change could impact services, workforce opportunities and economic development.
  • Our folks want more information and for information to be distributed more broadly.
  • There is a desire for our Board and leadership team to consider potential partners that strongly align with our mission and values and emphasize community and patient wellbeing.
  • We understand individuals wish to establish or continue avenues for local community input and decision-making, seeking to reflect in any potential partnership some aspects of the hospital district governance we have today.
  • No matter what decision is made, do not sacrifice quality for profitability.
  • The federal Public Service Loan Forgiveness program for student loans is essential to our workforce, and there is a desire that any potential partnership maintain worker eligibility.

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