Valley Medical Center Makes Operational Changes in Response to Financial Challenges

Today, Valley Medical Center shared difficult news with our teams that is necessary for our continued journey forward. Because of significant financial instabilities and uncertainties created by the state and federal government and private sector reimbursements, we continue to be faced with some very difficult challenges and decisions. We must further scale back operations to match our shifting financial realities. This requires a large-scale restructure of our workforce, as well as the consolidation and closing of some clinics and departments. All changes will roll out over the next two months.

These are very tough decisions that impact people’s lives, both our employees and the community we care for, and that is not something we take lightly. While incredibly difficult, these changes are necessary for Valley’s future stability.

A fundamental operational change includes shifting staffing models in most areas from part-time to full-time, a process that impacts more than 50% of our staff across many areas of the organization. Employees are eligible to apply for open, future positions, and depending on the role, there are possibilities to rebid, restructure, relocate, or shift to support other operational areas. Given this process, we do not yet know the number of FTEs who will separate.

Significant thought and consideration were given to areas of closure and consolidation to ensure the presence of other local resources. Patients who are seen at impacted departments and clinics will be referred to other local, community-based providers.

Valley is not alone in making these hard decisions, as systems across the country are facing similar decisions. As we move forward, we do so with respect for what we've built and hope for what’s ahead. Our mission remains. And with an evolved, hyper-focused structure we are determined to continue forward—with resilience, heart, and a deep sense of responsibility to the communities that rely on us.

Below details the Valley units and clinic locations closing and/or consolidating:

Hospital Units Closing June 27: Where appropriate, patients will be transferred to other trusted community-based providers.

• Northwest Pavilion Inpatient
• Inpatient Pediatrics

Clinics Closing: Patients will be referred to other Valley locations and/or other trusted community-based providers:

• Kent Primary Care: June 27
• Maternal Fetal Medicine Clinic: Contract for satellite services ends June 27
• Occupational Health Services: June 27
• Pediatric Neurology & Pediatric Sleep Medicine: June 27
• Renton Landing Urgent Care: May 12

Clinics Consolidating

• Medication Management-Covington: June 20 (partially consolidating to Renton location)
• Valley Women’s Healthcare-Covington: June 27 (partially consolidating to Renton & Auburn locations)

Additional Information:

Context & Rationale

• Because of the significant financial instabilities and uncertainties created by the state and federal government and private sector reimbursements, we continue to be faced with very difficult challenges and decisions.
• Valley is taking difficult, but necessary steps to address these challenges. Currently, Valley has a year-to-date operating loss of -$25M and growing.
• We must focus on serving those we can, rather than attempting to serve everyone at the cost of compromising care for all. Significant thought and consideration were given to areas of closure and consolidation to ensure the presence of other local resources (see FAQS for a listing of alternative options).
• These changes aim to realign resources to create a path for future stability.
• Over the past four months, we’ve taken extensive leadership and non-clinical cost-saving measures before turning to clinical workforce restructuring.

Support for Affected Employees

• Individual notifications are being delivered with respect and transparency.
• Impacted staff may apply for other open roles, and many will be eligible for rebid, relocation, or restructuring opportunities.
• Employee Assistance Program (EAP) and leaders are available for support.

 Financial & Strategic Background

• In March, reduced leadership by 13% and workforce by 8%.
• 135 positions on hold; 96 positions vacated and will not be backfilled.
• Pediatric inpatient volumes have dropped to an average of 4 patients/day—Valley will continue outpatient care and rely on regional children’s hospitals for inpatient needs.

Communication & Timeline

• Valley’s Board of Trustees endorsed plan, notifications and FAQs shared with staff starting May 12.
• Rebids expected to take place June 12-13; with the exception of RLUC, closures occur on June 20 and June 27.

Our Path Forward

• We remain committed to our mission as we stabilize and strengthen operations.
• These are hard decisions made with compassion, data, and the future of our community in mind.
• We recognize and honor the contributions of every affected team member.
• Valley’s mission must continue—with heart, resilience, and an unwavering belief in what’s next.