9/26/2025 CEO Communication

[September 26, 2025] We received some additional questions about the recent organizational changes at BMHD and again want to take this opportunity to educate our community. The restructuring was done for BMHD’s financial stability so that we can continue to serve the community’s healthcare needs in the future. There were no interruptions in service in any of our impacted areas.

Blue Mountain Hospital District made the difficult decision to conduct a strategic restructuring that was announced on Tuesday, September 16, 2025. This became necessary in response to losses from operations over multiple fiscal years, continued lower than expected utilization of services, increasing labor and supply costs, and in preparation for potential cuts to Medicaid in the One Big Beautiful Bill.

This restructuring resulted in the layoff of four clinical staff members. Clinical team members were encouraged to apply for other roles within the organization for which they were qualified. The reorganization resulted in the elimination of five mid-level leadership positions. All five mid-level leaders were offered severance pay packages based upon their years of service to the organization and those leaders with clinical licenses were encouraged to apply for other positions in the organization. One administrative role was eliminated. In total, nine current District employees were impacted in the reorganization, and one currently contracted/outsourced leadership position was eliminated.

A reorganization resulting in a reduction in workforce is not the same as “firing” employees or termination of employment and there is a specific legal process followed when an organization has to make this difficult decision. For example, employees may be recalled in the event that utilization improves, they are eligible to apply for other openings at BMHD, can apply for unemployment benefits, and have resources available to support their well-being. As mentioned, BMHD elected to offer severance pay to further support impacted leaders based on their years of service. Much of the reorganization was focused on key areas experiencing our most significant operational losses. Again, these areas are the Blue Mountain Care Center with almost a million-dollar operating loss last fiscal year and the Strawberry Wilderness Clinic with a $1.2 million dollar loss. These same areas were not operating efficiently when we compare to other healthcare organizations and consider widely available national benchmarks.

Reducing our costs is an important part of achieving financial viability for BMHD, and we will need to improve the community utilization of our available services, grow some services that would be beneficial to our community, and continue to improve access to care. BMHD needs to reduce costs and increase our revenue. Below you will learn about our revenue or “money” sources.

Funding Sources for BMHD: Where does the money come from?

With the operational losses over the last 5 years, and the property tax support not covering these losses, how does BMHD get by financially?  The quick answer is some significant grants were obtained over these years, mostly to help with the pandemic that occurred.  However, by the very nature of grants, this financial support can’t be relied on.  In fact, we expect that this type and amount of grant funding will not be available in the future. 

The sources of patient charges are depicted below for our most recent fiscal year that ended 6/30/2025.  Note the amount that comprises governmental sources at approximately 77%. 

While the above chart tells us who BMHD patients are, the following chart tells us where the actual revenues are coming from. Note that the property tax support, while very important to the survival of BMHD in our community, is only 5% of the total dollars coming into BMHD.  

As we prepare for upcoming government funding reductions that will affect hospital district revenue, we want to share several ways you can support and benefit from local healthcare services:

• Choose local care whenever possible. While clinic wait times may occasionally be longer than expected, we are actively working to expand access and refine scheduling to better meet the needs of our patients.
• Utilize local diagnostic and treatment services. Even if your primary provider or specialist is located outside the area, many services – such as laboratory tests, imaging, and certain infusions – can be completed here, saving you time and unnecessary travel.
• Consider scheduling general surgery locally. Our surgeon is able to see and schedule patients more quickly than many regional providers, offering timely, high-quality care close to home.
• Recover close to home. Whether you have surgery out of town or are recovering from an unexpected illness, our swing bed program allows you to complete your recovery near family and friends.

We sincerely thank our community for your continued patience, understanding, and support as we navigate these financial challenges and ongoing changes. Your trust in BMHD motivates us to keep working hard to provide essential healthcare services, even in uncertain times. We remain committed to transparency and to serving the health and well-being of our community with integrity and care.

Misty Robertson
Chief Executive Officer
Blue Mountain Hospital District