Here for Good

Ongoing News

12.12.2024 – Moving forward with non-binding letter of intent

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. Read the full media release here.

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.

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.

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.

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.

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.

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 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.

VIDEO UPDATES

In a new video update, our President and CEO Brian Moore and Board Chair Troy Cribbins discuss next steps in Bay Area Hospital’s partnership exploration. The board is committed to being transparent throughout the process and finding the best path forward for the health and well-being of our community. Watch the video here.

Bay Area Hospital We’re Here for Good.

For 50 years, Bay Area Hospital has been the epicenter of healthcare and is now the largest employer on Oregon’s Southern Coast. Our history is built on perseverance as we have consistently grown and evolved in response to our community’s needs. We’re committed to continuing that legacy for another five decades. We’re here for good. To do so, we have engaged national industry experts to help explore and evaluate opportunities to ensure the hospital’s future. As part of the process, we will consider partnering with or becoming part of a larger healthcare system that can invest in our services and our people for generations to come.

The process will likely continue through March 2025, and we will keep you updated every step of the way. In the meantime, we remain committed to providing the high-quality, compassionate care our community expects. For continued updates check this page or follow us on Facebook. The right care is right here, for the last 50 years and for 50 more.

Hear from President and CEO, Brian Moore and Hospital District Board Chairman, Troy Cribbins

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 

Media Release – BAH Exploring Strategic Options for Long-term Sustainability

MYTHS VS. FACTS

We’re kicking off our “Myths vs. Facts” series to inform you about Bay Area Hospital’s partnership exploration process. We’ll tackle a new myth each week and provide the facts you need to stay informed.

09/04/2024 – WEEK 1

MYTH: Our hospital doesn’t need a partner.

FACT: In today’s healthcare landscape, independent community hospitals face significant challenges. Rising costs, decreasing insurance reimbursements and the ongoing impact of the pandemic have stretched resources thin. A partnership with a larger health system can often bring significant benefits, like increasing financial stability, investing in advanced technology, maintaining or expanding services, and attracting medical staff. Additionally, the typical hospital considering affiliation today is already nearly three times larger than Bay Area Hospital.

09/12/2024 – WEEK 2

MYTH: Patient care will suffer if we join a larger system.

FACT: Improving and maintaining high-quality, safe care is a top priority in any partnership exploration. Studies have shown a correlation between higher clinical quality scores and hospitals affiliated with larger health systems. Health systems often have more resources to support clinical quality reporting by hospitals. Bay Area Hospital is also evaluating potential partners for their skills and resources to improve quality by strengthening employee recruitment and retention, recruiting and retaining physicians and other providers, and investing in equipment and technology that can support state-of-the-art delivery of healthcare in our community.

09/19/2024 – WEEK 3

MYTH: Hospital board members will somehow benefit financially from a potential partnership.

FACT: The Bay Area Hospital District Board of Directors selflessly volunteer more than 120 hours of their time and expertise each year without financial compensation to serve the hospital and community. They would not receive any personal or financial gain from potential affiliations with other hospitals or a health system. Their sole focus is to ensure the hospital’s success and make decisions that benefit patients, physicians, staff, and the community.

09/25/2024 – WEEK 4

MYTH: A partnership will lead to job losses.

FACT: Employee well-being, job security and workplace culture are top considerations in any future decisions. In some cases, partnerships could present more opportunities for professional growth and development for staff. Studies have also shown 80% of hospitals that joined a larger health system were able to measure an increase in employee satisfaction after an affiliation. The Bay Area Hospital District Board of Directors has stated their intent and goal is to only select a partner who share our values and prioritizes team members.

10/3/2024 – WEEK 5

MYTH: The hospital can get tax dollars to help with finances.

FACT: The hospital receives no tax dollars and there has not been a levy since 1989. In fact, the Bay Area Hospital District is the only health district in Oregon to not currently receive any county property tax funds. If the hospital were to request a levy, the process requires approval from voters, is not a guaranteed solution and new financial data indicates the levy would not be enough. We’ve had a 0% tax rate since the early ‘90s when legislation permanently closed that window. There are also strict limits on the amount that can be collected from the tax a levy. The levy is capped and even if the public voted in favor, the amount would not be sufficient to ensure the long-term sustainability of the hospital.

10/10/2024 – WEEK 6

MYTH: Bay Area Hospital has already decided to join a larger health system.

FACT: No decisions have been made by the Bay Area Hospital District Board of Directors. We do not yet know what this will look like or if it will even happen. This is a months-long process, and we are evaluating a range of options, including potential partnerships, affiliations, long-term leases, joint ventures, or a merger.

10/17/2024 – WEEK 7

MYTH: We can maintain the same level and number of services in the future.

FACT: Despite successes in our financial turnaround, there are many factors out of our control. Without a partner, it’s unlikely we’ll be able to maintain all our current services in the long run. The pandemic has had a lasting impact through service disruptions, high cost of temporary labor, increased operational and supply expenses, and falling insurance reimbursements. These factors have continued to negatively impact the financial performance of hospitals around the country and Bay Area Hospital is no exception.

10/24/2024 – WEEK 8

MYTH: That profits will be more important than patient care.

FACT: No, our patients come first. For more than five decades, Bay Area Hospital has cared for the health and well-being of the South Coast community. That has been and always will be our main priority. Financial stability is important in that it allows us to provide our community with the best possible care, close to home. The primary goal of any possible partnership is to ensure our hospital continues to operate for the benefit and health of the community for another 50 years and beyond.

FREQUENTLY ASKED QUESTIONS

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.

What will an affiliation or partnership look like?

It is still very early in the exploration process, and we do not yet know what this will look like or if it will happen. At this stage, we plan to evaluate a range of options, including potential partnerships, affiliations, joint ventures, long-term lease agreements or a merger. 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. This is a months-long process, and no decisions have been made at this time.

Who are the organizations you are approaching to discuss potential partnerships?

We understand the desire for details and will do our best along the way to share as much information as we can. However, because our process could involve a potential business transaction, other parties may request confidentiality, or the nature of the discussions may simply require it.

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. 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.

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.