Ritzville hospital to lay off more than 100 employees, at risk of closure

Ritzville’s East Adams Rural Health Care is in dire financial straits as the hospital considers laying off the majority of its workforce or closing entirely.

According to a notice from the Washington State Security Employment Department, the hospital plans to lay off 108 employees beginning Jan. 7.

Interim CEO Todd Nida wrote in the notice that the Ritzville hospital is “experiencing severe financial difficulties and is at risk of closure or filing for bankruptcy.”

In recent meetings of the Adams County Public Hospital District, interim Chief Financial Officer Viola Babcock warned board members that the hospital district has lost $14 million since 2020. East Adams Rural Health Care is also approximately $10 million dollars in debt, she added.

“We just simply do not have the cash to pay it down,” Babcock said, according to the minutes of the October meeting.

This summer the hospital received $2 million from the Washington State Hospital Distressed fund, which has allowed the hospital to maintain current operations through the end of the year.

The hospital is holding a 2 p.m. Saturday town hall to discuss the future of the hospital system. The community meeting will be held in Ritzville at the Legion Hall located at 106 West Broadway Ave.

“We recognize that there has been recent news coverage and public discussion regarding the status of our hospital. We understand this has led to questions and some uncertainty within our community. Our goal is to provide clear, accurate information directly from us,” a news release from hospital administrators stated.

This summer former hospital CEO Corey Fedie said that East Adams did not anticipate a rollback of services or staff amid state and federal cuts to Medicaid. He did note that rural hospitals like the one in Ritzville are likely to feel Medicaid cuts “more acutely.”

Fedie was placed on indefinite administrative leave at the beginning of September as the dire financial situation facing the hospital came into clearer focus.

The hospital district also recently faced investigation from the state auditor over embezzlement of the hospital in 2023. That year a former accounting clerk embezzled more than $33,000 over a period of months before they were discovered. As of this summer the funds had not been recovered by the hospital, but the former employee had been convicted and sentenced to 60 days in jail.

According to the state auditor’s report, East Adams Rural Health Care “lacked adequate oversight and review” of their employees’ activities.