09/10/2025
Continuing in the spirit of transparency and getting you news as quickly as possible, we're sharing the recap from last nights BAHD Board of Directors meeting:
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Kelly Morgan presented a turnaround plan addressing losses, cash flow, and debt. Significant challenges were recently uncovered, most notably that the hospital may need to secure a new EHR system by 2027 with an initial cost of $22.3M. In addition, a balloon payment of $30.3M is due on the BMO bank loan by the end of calendar year 2030. The hospital has, on average, lost $2M per month for 13 straight months.
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Kelly Morgan, interim CEO, Doug Dickson, interim CFO, and Gretchen Nichols, COO, are preparing to meet with the Oregon Health Authority. The goals are a $10M cash infusion, refinancing the Bank of Montreal loan, legislative support for the issuance of lottery bonds, and Medicaid reimbursement reform. Meetings with various stakeholders from the State of Oregon, key leaders, and UFCW Local 555 support are scheduled for September to bring these matters forward.
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Kelly Morgan reviewed market share, payer mix, and service line performance. Emphasis needs to be on recruiting physicians to reduce outmigration and grow services. If financial performance worsens, potential conversion to a Type B hospital (fewer beds, loss/reduction of services, better Medicaid rates); No service line reductions are planned at this time.
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Patrice Parrott, Quality Chair, summarized committee updates: Joint Replacement Center success, CMS star rating challenges, and readmission reduction efforts. Kelli Dion, CQO, explained the upcoming CMS rule changes: all Medicare Advantage patients are included in quality metrics; the performance period is shortened from 3 to 2 years, and COVID exclusion is removed.
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Doug Dickson, interim CFO, reported a $2.3M loss in July. The budget will be recast to reflect realistic volume expectations. The board approved a resolution to update investment account signers.
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The board reviewed CEO hiring policies and opened public input.
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