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BY HEATHER BOSCH AND JONAH OAKLIEF

MyNorthwest.com

A major health care provider is making cuts, and it likely won’t be the last.

Valley Medical Center is closing five clinics, including an urgent care center in Renton. It’s consolidating two other clinics and closing two hospital units by June 27th. The provider estimates that 50% of its 4000 employees will be affected by the moves, although it is not clear how many will ultimately lose their jobs.

Valley Medical says, year to date, it is operating at a $25-million-dollar loss, due to uncertainties over state and federal funding and insurance company reimbursements. And those in the medical profession fear it will only get worse.

Right now, Congress is considering up to $880 billion in cuts to Medicaid, which is a program that helps lower-income Americans and those with no insurance through their employer. The Trump Administration argues it is eliminating fraud and waste and that no one who qualifies for Medicaid will get pushed off the program.

Congresswoman Kim Schrier pushes back on closures

Washington Congresswoman Kim Schrier, a pediatrician, says, “The reality is you just don’t get that kind of savings without kicking a lot of people off.”

And she says when that happens, everyone will pay for it.

“Those patients are still going to get sick. They’re actually going to get sicker, they’re not going to be able to go to their primary care physician, and instead they’re going to go to the emergency room. And then the wait in the emergency room gets longer. And because they can’t pay for that care, the hospital is going to have to eat it,” Schrier said.

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Hospitals will have to respond to the extra financial burden by making their own cuts to service.

Washington State Hospital Association CEO Cassie Sauer says Valley Medical will not be the last health care provider that will be forced to make cuts.

“They’re not going to be the only ones. There are lots of hospitals talking about the cuts they’re going to have to make and a loss of services that communities will experience,” she told KIRO Newsradio.

The most impactful changes include closures of key inpatient hospital units. The Northwest Pavilion inpatient unit and the Inpatient Pediatrics department will both close on June 27. The closure follows a sharp decline in patient volume, with an average of just four inpatients per day. While Valley will continue to provide outpatient pediatric services, inpatient care will now be directed to regional children’s hospitals.

“These are extremely difficult decisions that affect not only our workforce but the broader community we serve,” Valley said in a statement to staff. “They are not taken lightly—but they are necessary for the future stability of our organization.”

Several Valley outpatient clinics are also set to close permanently by the end of June. Kent Primary Care, Occupational Health Services, and the Pediatric Neurology and Sleep Medicine clinic will close, along with the Maternal Fetal Medicine Clinic, which is ending its satellite service contract. Renton Landing Urgent Care closed earlier on May 12.

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The Medication Management clinic in Covington will partially merge with Valley’s Renton campus by June 20, while Valley Women’s Healthcare in Covington will combine services with the Renton and Auburn locations by June 27.

Hospital leadership said these closures were chosen with careful consideration of community resources to minimize disruption to patient care.

“We gave significant thought to each area of closure and consolidation, ensuring that there are alternative providers in place to continue care,” the hospital noted.

Hospital administrators stressed the current healthcare landscape is putting pressure on systems nationwide and Valley Medical Center is not alone in facing these tough decisions.

“We are focusing our resources on where we can make the most impact,” the hospital said. “Our mission remains, and with a more focused structure, we are committed to continuing forward with resilience and a deep responsibility to those who depend on us.”

Notifications to affected staff began this week. Employees impacted by the closures are encouraged to apply for available positions within the organization.

Read more of Heather Bosch’s stories here.

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Valley will close two hospital units and five clinics, as well as shift most staffing models to full-time instead of part-time.

RENTON, Wash. — Valley Medical Center will close hospital units and clinics across south King County over the next two months and is planning for potential layoffs as it grapples with financial challenges.

The hospital is operating at a loss of $25 million year-to-date, and that figure is growing. That combined with uncertainty from state and federal budgets and private sector reimbursements forced the hospital to scale back operations and restructure its workforce.

“We must focus on serving those we can, rather than attempting to serve everyone at the cost of compromising care for all,” a hospital spokesperson said in a statement. “Significant thought and consideration were given to areas of closure and consolidation to ensure the presence of other local resources.”

One of the biggest changes will be how Valley restructures its workforce. The hospital said it would shift staffing models in most areas from part-time to full-time, which impacts more than 50% of staff. Employees can apply for future open positions or potentially shift to other operational areas.

The hospital said it didn’t know how many employees would be separated during the process.

“Hospitals are facing tremendous financial stress," said Cassie Sauer, the CEO of the Washington State Hospital Association. "We've got hospitals that cannot make payroll, and so they're having to cut things. We've seen closure of rural labor and delivery units. We've seen closure of mental health units, outpatient clinics, urgent cares. So, they're one of multiple hospitals having this conversation.”

Valley Medical Center will close two hospital units on June 27: Inpatient pediatrics and Northwest Pavilion Inpatient.

It will also close five clinics, and patients will be referred to other locations. Kent Primary Care, Maternal Fetal Medicine Clinic, Occupational Health Services and Pediatric Neurology and Pediatric Sleep Medicine will close June 27. Renton Landing Urgent Care closed May 12.

Valley will also consolidate two clinics. Medication Management in Covington will partially consolidate with the Renton location June 20. Valley Women’s Healthcare in Covington will partially consolidate with the Renton and Auburn locations June 27.

The hospital said staff were notified of the changes starting Monday.

“Valley is not alone in making these hard decisions, as systems across the country are facing similar decisions,” a hospital spokesperson said in a statement.

The changes follow previous staffing cuts earlier this year, along with other cost-saving measures. In March, Valley reduced its workforce by 8% and its leadership by 13%. There are 135 positions on hold, and 96 positions have been vacated and will not be backfilled.

The March cuts affected 101 employees and were expected to save the hospital $17 million per year.

In the wake of significant financial instabilities and uncertainties, Valley Medical Center is shuttering multiple healthcare units and clinics throughout south King County, beginning with Renton Landing Urgent Care.

On Monday, May 12, Valley Medical announced that loss of funding from the state and federal government, along with private sector reimbursement instability, will lead to the closing of two inpatient units, five clinics and the consolidation of two clinics. Valley Medical, which serves over 600,000 residents, has a growing year-to-date operating loss of -$25 million.

This announcement follows the layoff of 101 non-union employees at Valley Medical Center in Renton, which happened in late March. Those layoffs were due to an abrupt end to the hospital’s Medicaid — or Apple Health — reimbursements.

“We continue to be faced with some very difficult challenges and decisions,” said the May 12 statement from Valley Medical. “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.”

Northwest Pavilion Inpatient and Inpatient Pediatrics, which are located at the Medical Center’s Renton location off of Talbot Road, are the two units that will be closed on Friday, June 27. According to Valley Medical’s website, it is the only Inpatient Pediatrics Unit located between Seattle and Tacoma.

Three of the clinics that will close on June 27 are located on the same campus: Maternal Fetal Medicine Clinic, Occupational Health Services and the Pediatric Neurology & Pediatric Sleep Medicine clinic. The Renton Landing Urgent Care has already closed and the Kent Primary Care clinic will be shut down on June 27.

The Medication Management clinic in Covington will be partially consolidated to the Renton location, while the Valley Women’s Healthcare clinic in Covington will be partially consolidated to Renton and Auburn locations.

“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,” said the Valley Medical statement, which further explained that extensive leadership (13% reduction) and non-clinical (8% reduction) cost-saving measures were taken before turning to restructuring of the clinical workforce.

Valley Medical is a public district hospital and 64% of Valley’s reimbursement for care provided is from federal or state funding sources, which Valley Medical communications director Kristin Bidwell told the Reporter in March means that any reductions disproportionately impact Valley Medical.

In fall 2024, the state of Washington applied to continue the Medicaid Directed Pay Program (DPP) — an option to “help states close gaps in payment between Medicaid and other payers” — through the federal government for the 2025 calendar year.

In February 2025, the Washington State Hospital Association (WSHA) reported that the program had not been renewed by Jan. 20, 2025, and that the current administration has not approved the program for 2025.

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