1775 Thompson Rd, Coos Bay, Oregon 97420

(541) 269-8111

What’s New

We appreciate your continued support and interest in Bay Area Hospital. We’re committed to keeping you informed as we work together to protect healthcare access for our community and the greater southern coast of Oregon. Here are the latest updates.

Happening Now

FAQ's

The Facts

Current News

From our Leadership

More Questions?

Frequently Asked Questions

Where can I find information about what’s happening?

Bay Area Hospital District’s monthly joint Board of Directors and Finance Committee and the 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 and budgets. 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. 

The hospital is now actively exploring refinancing options for its current debt. In April, HB4075 was signed into law. This bill ensures healthcare access on the Oregon Coast by guaranteeing funding for the Hospital. It’s not a blank check or funding. The 20-year refinancing plan simply guarantees the hospital, will be able to keep operating at its current capacity with fear that a forced banknote demand would force us to cut services or risk foreclosure. Read Senator Boomer Wright’s media release.

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 priorities driving all decisions: 1) Quality and Patient Safety, 2) Patient Experience, 3) Employee and Physician Engagement, 4) Financial Performance, and 5) Growth.

Bay Area Hospital management and Board members met with community leaders from organizations interested in partnering with Bay Area Hospital to explore the potential for a local health system. Because of the complexity involved—including organizational structures, multiple municipalities, regulatory considerations, and required approvals—creating a local system would likely take considerable time and is not a viable option. Our focus now is on discussions with our community partners and maintaining open lines of communication.

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.

Facts about our Financial Sustainabilty

Bay Area Hospital has fielded many questions from the community. Below, you’ll find a selection of questions and details on why the hospital is experiencing significant financial challenges and how it plans to achieve fiscal sustainability.

What progress has been made on the financial turnaround plan?

Hospital leadership completed a comprehensive analysis of the organization’s financial operations and created an accelerated turnaround plan. Since July 2025, under new executive leadership and Board stewardship, we’ve demonstrated significant progress.

  • Positive financial performance. We posted our first month of positive operating income in December 2025, after nearly two years. We’ve remained positive in each month since.
  • Personnel costs reduced. As a percentage of net patient revenue, it’s dropped significantly, from 65% of net patient revenue to 55% or less.
  • Contract labor expenses dropped by half. Significant improvements have been made from almost $2M per month last year to a new run rate of under $1M per month so far in 2026.
  • Days Cash on Hand (DCOH) has rebounded. With operational improvements, it’s changed from a low of 51 days late last year to now at 60 days or better.

Is the Hospital seeking other types of funding or support?

Yes, for several months we’ve been exploring alternative funding sources to support our investment in our community’s health care. Currently, we have applied for $1.4M in Rural Health Transformation Program (RHTP) dollars, $5M from the Catalyst Awards (also RHTP), a congressional capital request of $6M, and the opportunity to secure workforce housing funding.  As with any Federal or State funding, the final outcome is subject to the fluctuating nature of a governmental entity. We will keep the public informed as we move through the award notification process.

What is the status of the hospital’s bank loan?

With HB4075 passed and signed into law, Bay Area Hospital is actively pursuing refinancing options for its bank loan. The hospital continues to make payments on our existing loan while working through the refinancing and has never missed a payment. We have until April 1, 2027 to complete a refinancing under HB4075. With efforts underway with the State, bond counsel, and multiple interested lenders we expect to finish the process before the end of the calendar year. State legislators recognized that Coos Bay cannot afford to have Bay Area Hospital close, not only for the much-needed healthcare it provides, but also for the $356 million yearly economic impact it has on the community and 1,100 jobs it offers.

Current News

State Representative Val Hoyle announced the community projects she is supporting through the U.S. House Appropriations Committee for FY2027. Notably, Rep. Val Hoyle has requested $4 million in funding for Coos County to upgrade Bay Area Hospital’s CT scanner and cardiac catheterization lab equipment – critical to providing healthcare on the Coast.

Governor Tina Kotek has signed House Bill 4075 into law, which provides the financial backing necessary for the hospital to refinance it’s loan. This removes the demand to pay an excessively large balloon payment in 2030, avoid the bank calling the loan note, and allow us to secure better overall loan financing for the hospital.

Mar 3, 2026 -Bay Area Cancer Center held a grand reopening of it’s newly remodeled patient housing units, providing comfortable and convenient accommodations for patients and families undergoing extended treatment. Thanks to the generous $250,000 donation from the Bandon Dunes Charitible Foundation, significant upgrades were made possible. Take a Tour here: https://vimeo.com/1168290549?fl=ip&fe=ec

Oct 14, 2025, at the BAHD Board of Directors meeting, Gretchen Nichols, RN, BSN, MBA, was unanimously appointed as the new President and CEO of Bay Area Hospital. Read the press release.

Aug. 8, 2025 Bay Area Hospital announced the termination of the Letter of Intent with Quorom Health. Read the media release.

Apr 14, 2025, Bay Area Hospital provides written response to the local community’s proposed option presented by the UFCW.

Mar 31, 2025 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 press 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.

Mar 3 2025 Read our press 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.

Our Hospital

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 happening. But, having reliable and accessible healthcare in our community is essential to the people who live here and to the broader 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.

More Questions

We want and value your feedback. Submit your questions below and check back for regular updates. Send questions to communication@bayareahospital.org