Washington

Washington state hospital system ‘very fragile’ after two years of losses

Published

2 years ago

April 24, 2024

Washington state hospital system ‘very fragile’ after two years of losses

Hospitals in Washington state continue to deal with daunting financial difficulties.

While hospitals generally fared a bit better in 2023 than in 2022, most hospitals are continuing to lose money, according to a survey by the Washington State Hospital Association. Some are cutting services and reducing beds.

During a media call Tuesday, Washington hospital leaders say some organizations are on the brink, and some aren’t poised to handle more financial pressures. Cassie Sauer, president and CEO of the Washington State Hospital Association, also pointed to financial difficulties from the Change Healthcare cyberattack, which has affected hospitals and healthcare providers nationwide.

“What we really see is that the state of Washington’s hospital system remains very fragile after experiencing more than two years of significant losses,” Sauer said. “And these losses are now being compounded by delayed payments from insurers and the impact of the cyber attack on Change Healthcare.”

‘Unprecedented, unsustainable’

Cumulatively, the state’s hospitals lost $3.8 billion in 2022 and 2023, said Eric Lewis, chief financial officer of the Washington State Hospital Association.

“These losses are unprecedented, unsustainable, and represent a huge-post COVID financial challenge,” Lewis said.

In 2023, the state’s hospitals had a -5.2% operating margin, which actually represents a bit of improvement from 2022, when the margin was -7%. Lewis said 85% of the state’s hospitals are losing money.

The state’s hospitals ran in the red during the first half of 2023, and the losses mounted as the year progressed. Washington’s hospitals took in more revenue in 2023, but the revenues were outpaced by higher expenses.

The net operating losses for Washington’s hospitals totaled $1.7 billion in 2023, compared to $2.1 billion in 2022.“The losses, though not as massive, continued,” Lewis said. He noted that the state’s hospitals have seen significant losses for eight consecutive quarters.

Adding to the difficulties, more residents in Washington are relying on Medicare and Medicaid, Sauer noted. Fewer people are using commercial insurance, which typically provides better reimbursements to hospitals.

“That piece of the pie that’s commercial has really diminished quite a lot,” she said.

‘A large hole’

Ettore Palazzo is the CEO of EvergreenHealth, a community-owned, two-hospital system based in Kirkland. He said, “These terms, unprecedented and unsustainable, are absolutely true. And there are other adjectives that we’re trying to come up with because it almost doesn’t seem like those words are really appropriate anymore.”

EvergreenHealth has lost $158 million over the past two years, he said.

To cut expenses, EvergreenHealth has had to reduce some positions, including some non-clinical positions and an executive role, Palazzo said. Some services have had to be cut, including a “helpline,” where residents could call nurses with health questions. The helpline had been operated for 30 years.

While EvergreenHealth has made some headway in reducing losses, Palazzo said the system still faces a difficult road.

“We have a large hole to climb out of,” Palazzo said. “And the thought of any other disruption, whether it be self-imposed, or as a result of another pandemic, or anything that changes the current, really delicate balance of how healthcare finances work now, could put all that in jeopardy. And I do worry about how hospitals will be addressing their capital needs as they work towards improvements.”

Closing delivery services

Cathy Bambrick, administrator of Astria Toppenish Hospital, a 63-bed community hospital, outlined some of the sober challenges her organization has faced. The hospital lost nearly $8 million in 2023, after losing $7.3 million in 2022.

The hospital serves one of Washington’s most impoverished and ethnically diverse regions, including a large Native American population. The hospital is the only one in the state located on a reservation.

Lawmakers are working with the hospital to sustain emergency and acute care services, but Bambrick said some services have had to be cut.

In December 2022, the hospital closed its labor and delivery unit, leaving local women with a drive of more than 30 minutes, even in good weather. “And you know, in eastern Washington, we have very difficult driving conditions in the winter,” Bambrick said.

The hospital typically delivered a baby a day, she said.

“We couldn’t have felt worse about closing that delivery unit,” she said.

In 2023, the hospital had to close its MRI service. “We are one of two hospitals in the state that doesn’t offer MRI services to its patients,” she said.

Needing a long-term remedy

Elise Cutter, CEO of Island Health in Anacortes, an independent, public hospital district, including a 43-bed facility, along with primary and specialty care clinics. Island Health is at a -12% margin over the past two years, she said.

“Over the past two years, we’ve seen an unprecedented increase in costs, yet have not seen corresponding increases in the payment for care,” Cutter said.

Even though Island Health operates a small hospital, Cutter noted that it’s “too big” for enhanced funding for rural providers from the federal government.

Despite the financial hurdles, Island Health’s hospital has received a 5-star rating from the Centers for Medicare & Medicaid Services for the past two years, she says.

“We need to find a long-term solution to ensure that independent, rural public hospital districts like Island Health can continue to be the safety net for our community, and provide 5-star care close to home,” Cutter said.

‘Heartbreaking decisions’

In addition to the losses, Sauer pointed to the gut-wrenching decisions some hospitals have had to make to reduce services in order to stay afloat. Even seemingly minor decisions, such as reducing a couple of beds, matters to people who are seeking care, she said.

“Over the course of the last year, we’ve seen hospitals make both what seemed like mundane, but also heartbreaking decisions, about service reductions and closures that are done to preserve access to other hospital services,” Sauer said.

And some of those decisions mean patients are waiting longer for the care they need, whether it’s closing a unit or even a couple of beds, she said.

“If you’re someone who’s looking for care, it can be a really big deal that your hospital now has less capacity,” Sauer said.

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Related Topics:astria evergreenhealth Featured hospital island-health toppenish washington wsha

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Washington

Washington Capitals 2025-26 W Magazine Now Available | Washington Capitals

Published

13 hours ago

December 18, 2025

Press Room

Washington Capitals 2025-26 W Magazine Now Available | Washington Capitals

Arlington, Va. – W Magazine, a lifestyle publication produced by the Washington Capitals, is now available for purchase online at www.washcaps.com/wmagazine and at the Team Store at Capital One Arena and at the Team Store at MedStar Capitals Iceplex. The fan-favorite magazine, which features content surrounding every Capitals player along with hundreds of personal, never-before-seen family photos, is available for $8 plus shipping. In addition, season ticket members will receive a complimentary issue, with copies for season ticket members available at the Planholder Hub on the 100-level concourse during Capitals home games.

The cover story, written by Capitals senior writer Mike Vogel, goes in-depth with forward Pierre-Luc Dubois. Vogel speaks with Dubois, his teammates and family members for an extensive feature on the phone call that changed Dubois’ life and shaped his future with the Capitals franchise. Spanning more than 200 pages, W offers exclusive photography of Capitals players and their families, along with lifestyle content and interviews with every member of the 2025-26 roster. Highlights include:

John Carlson on fishing in Maryland with his sons
Brandon Duhaime on spearfishing and his related YouTube channel
Ryan Leonard on moving to D.C. and living with the Dubois family
Charlie Lindgren on his first offseason as a dad
Alex Ovechkin on celebrating back home after becoming the NHL’s all-time leading goal scorer
Logan Thompson on his love of dogs
Trevor van Riemsdyk on pop-a-shot and pickleball

The magazine also features an in-depth look at the Capital One Arena transformation project, including exclusive photos, insights into future phases and Capitals player reactions to the new Capitals locker room complex. A special interview with Monumental Sports Network’s Joe Beninati and Craig Laughlin reflects on the historic 50th anniversary season, while a day-in-the-life piece with Caps Radio’s John Walton and Katie Florio brings readers behind-the-scenes of a home game radio broadcast.

Additional features include a look at a regular day for former Capitals service dog in training Biscuit – now a facility dog at Walter Reed National Military Medical Center – and a photographic recap of Alex Ovechkin’s historic 2024-25 season. A new “Beyond the Boards” section spotlights community stories, while the fan-favorite “Short Shifts” section returns with Capitals players sharing thoughts on topics such as the best singer on the team, funniest teammate, personal goals beyond hockey, what everyone should try at least once, their ideal entrance theme song and more.

The magazine also profiles members of the Capitals Black Hockey Committee and introduces fans to the team driving the organization’s youth hockey initiatives.

W design services were provided by Matt Ryan. Player photography was provided by Greg Powers with assistance from Damon Banks. The cover featuring Pierre-Luc Dubois was photographed on the Potomac River in Washington, D.C., with the assistance of captains and crew from City Cruises. Players were photographed for the publication at Origin in Arlington, Va.

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Washington

Ginger’s Journey: Walking from Washington State to Washington, D.C.

Published

1 day ago

December 17, 2025

Press Room

Ginger’s Journey: Walking from Washington State to Washington, D.C.

Imagine setting out, on foot, for a journey not knowing how long it would take. Now imagine doing it with two animals as traveling partners from Washington State to Washington, D.C.

“Now I’ve started this leg of the journey in Morton, Washington where I was spiritually requested to go to Washington, D.C. and sing the song ‘Imagine’ by John Lennon on the Capitol steps,” says Jacob Holiday.

Jacob Holiday is on his way across America so he can sing a song he says signifies peace in the hopes, he says, of ending violence everywhere.

“I want so much peace. Cops would no longer carry firearms. We’re going to send the militaries of every country, I don’t care which one you’re talking about but every country, home to go to sleep. I don’t care what they do. But I want all this violence, everything, all this violence to stop.”

He has two wagons and his traveling companions are a dog and a goat. Holiday started in Washington State in July and he’s not worried about how long his hike across America will take.

His multi-state trek has seen him encounter a lot along the way, including a run-in with a bear.

He carries food for himself and his dog and his goat on carts that he says weigh a couple hundred pounds. Besides necessities, Holiday has one thing he’d greatly appreciate receive being able to buy as he continues his mission.

Holiday says he knows his mission isn’t an easy one, and he uses it as a metaphor for life as a whole.

We caught up with Holiday in the early part of November on a 70-degree day in Cambridge, Nebraska then spoke to him again a few days later in the rain as he headed east on Highways 6 and 34, so no telling how far he’s gotten now.

After we met with Holiday, we did notify the local sheriff to perform a welfare check, but we’re told Holiday wanted to continue his walk with his Capitol Steps goal still ahead of him. We also offered him food for himself and his animals, which he declined saying he had enough food on his carts.

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Washington

Washington state flooding damage profound but unclear, governor warns

Published

2 days ago

December 17, 2025

Press Room

Washington state flooding damage profound but unclear, governor warns

The extent of the damage in Washington state is profound but unclear after more than a week of heavy rains and record flooding, according to the state’s governor, Bob Ferguson.

A barrage of storms from weather systems stretching across the Pacific has dumped close to 2ft (0.6 metres) of rain in parts of the state, swelling rivers far beyond their banks and prompting more than 600 rescues across 10 counties.

More high water, mudslides and power outages were in the forecast. Elevated rivers and flood risk could persist until at least late this month, according to the National Weather Service. Wind and flood watches and warnings are expected in much of the north-west for the next couple of days as storms bring rain, heavy mountain snow and high winds.

As of Tuesday, authorities had recorded one death – of a man who drove past warning signs into a flooded area – but key highways were buried or washed out, entire communities had been inundated, and saturated levees had given way. It could be months before State Route 2, which connects cities in western Washington with the Stevens Pass ski area and the faux Bavarian tourist town of Leavenworth across the mountains, can be reopened, Ferguson said.

“We’re in for the long haul,” Ferguson said at a news conference. “If you get an evacuation order, for God’s sakes, follow it.”

It won’t be until after waters recede and landslide risk subsides that crews will be able to fully assess the damage, he said. The state and some counties are making several million dollars available to help people pay for hotels, groceries and other necessities, pending more extensive federal assistance that Ferguson and Washington’s congressional delegation expect to see approved.

According to the governor’s office, first responders had conducted at least 629 rescues and 572 assisted evacuations. As many as 100,000 people had been under evacuation orders at times, many of them in the flood plain of the Skagit River north of Seattle.

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