Ritzville Hospital Faces Massive Layoffs as Financial Crisis Deepens
East Adams Rural Health Care, located in Ritzville, Washington, is confronting a severe financial crisis that may lead to the layoff of over 100 employees or potential closure. The hospital has announced plans to terminate 108 positions starting on January 7, 2024, according to a notice from the Washington State Security Employment Department.
Interim CEO Todd Nida cited “severe financial difficulties” in the notice, expressing concerns that the hospital is at risk of closure or bankruptcy. Recent meetings of the Adams County Public Hospital District revealed alarming figures. Interim Chief Financial Officer Viola Babcock informed board members that the hospital district has incurred losses amounting to $14 million since 2020 and is currently facing approximately $10 million in debt.
“We just simply do not have the cash to pay it down,” Babcock stated during an October meeting, highlighting the dire situation.
In a bid to stabilize operations, East Adams Rural Health Care received $2 million from the Washington State Hospital Distressed Fund this summer, allowing it to maintain current services through the end of the year. To address community concerns, the hospital plans to hold a town hall meeting on Saturday at 2 p.m. at the Legion Hall, located at 106 West Broadway Ave.
The hospital’s administration issued a statement acknowledging the recent media coverage and community discussions about its status. “We understand this has led to questions and some uncertainty within our community. Our goal is to provide clear, accurate information directly from us,” the statement read.
The financial troubles of East Adams Rural Health Care have been exacerbated by broader issues in the healthcare sector. In the summer, former CEO Corey Fedie indicated that while the hospital did not foresee immediate service or staff reductions, rural hospitals are likely to feel the impact of state and federal Medicaid cuts more acutely. Fedie was placed on indefinite administrative leave in September as the hospital’s financial situation worsened.
Additionally, the hospital district has faced scrutiny from the state auditor due to a case of embezzlement earlier in 2023. A former accounting clerk misappropriated over $33,000 before being apprehended. The funds have not yet been fully recovered, although the employee has been convicted and sentenced to 60 days in jail. The state auditor’s report indicated that East Adams Rural Health Care “lacked adequate oversight and review” of employee activities, further complicating its financial standing.
As the community braces for potential job losses and the future of the hospital remains uncertain, the town hall meeting could provide critical insights into the next steps for East Adams Rural Health Care.
