Uncategorized Archives - Bay Area Hospital

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/