07/12/2025
At Klickitat Valley Health, our mission is clear: to provide compassionate access to quality health care locally.
A recent report from the Sheps Center listed KVH as a hospital “at risk of closure” due to expected Medicaid funding cuts. We were not contacted before being included, and we don’t believe this label reflects our current situation or our strong commitment to serving this community.
The Washington State Hospital Association has reviewed the list and found differences between it and their own data. While some hospitals on the list may face serious challenges, being included does not mean a hospital is about to close.
That said, the financial outlook is difficult. Federal changes like those in the One Big Beautiful Bill Act (OBBBA), along with new state-level taxes and funding cuts, will impact hospitals that care for many Medicaid patients. At KVH, about 26% of our patients are covered by Apple Health/Medicaid, and that funding helps us keep services going for those who need them most.
We are currently reviewing what these changes will mean for KVH. Some funding cuts may start as early as next year, while others are scheduled for 2027 or later. Currently, we have no plans to cut services or close the hospital. We are watching closely and working with our hospital board to make smart decisions that protect our patients and our staff.
If you or someone you know is enrolled in Apple Health, it’s important to stay updated. New rules are coming that may require people to prove eligibility every six months. Most people will still qualify, but they could lose coverage if they miss paperwork or deadlines. The team at KVH is already preparing to help the community through this process.
Even though this bill brings new challenges, there are reasons for optimism. Earlier versions would have cut key programs like Directed Payment Programs (DPPs) right away. Thanks to strong advocacy, including our work with Representative Newhouse, the program is preserved, with cuts now happening slowly over time.
KVH is one of eight hospitals nationwide to be selected for the Rural Hospital Stabilization Program. Over the next 18 to 24 months, professional experts will help us review our services, find new revenue sources, and improve efficiency, just when we need it most.
In addition, OBBBA creates a Rural Health Transformation Fund that offers $50 billion in grants over five years. KVH has already received over $20 million in grant funding over the past eight years. The experience of our leadership team and track record of success puts us in a strong position to compete for these new funds.
We know the road ahead won’t be easy, but we have time, tools, and a plan. Our goal is to keep health care local, protect the financial health of our district, and support the people who rely on us every day.
We’re here. We’re committed. And we’ll keep fighting for rural health care in Washington.
