Since 1997 I have worked at the local headquarters of a $1.7 billion credit union, serving as the Chief Financial Officer for the last 21 years. During my tenure I have participated in 7 credit union mergers and bank branch purchases and have extensive experience with purchase accounting, liquidity management, strategic planning, annual budget creation, financial audits and regulatory federal/state exams. I currently supervise branch operations in 26 communities throughout Oregon; Human Resources, including all employee insurance, training, and retirement benefits; Marketing, Investment Services; and am an active participant of the team which reviews commercial lending requests and member credit-related issues.

I participated in the due diligence process to explore options for long-term sustainability for BAH—including tax levies, alternative financing, and partnerships. Partnership consideration included analyzing written proposals, site visits to potential hospital partners to meet with staff/board and applying critical thinking for challenges related to in culture, demographics, control, and decision-making. A lease agreement with Quorum Health is a viable option to provide immediate financial relief and liquidity for stable day-to-day operations for continuity in the community. It will provide much-needed capital to replace outdated equipment, expand and add new service lines. Steps are also being taken to retain the not-for-profit status.

Default of the $47 million bank loan and ongoing monthly losses has crippled the hospital’s current operations and ability to plan for the future in a meaningful way. The banking industry is heavily regulated to protect safety and soundness of depositors. Because of the default, this loan is considered impaired by accounting standards and the most recent audit addresses concerns of BAH being an ongoing concern due to operational losses. Refinancing the loan with another bank is not realistic. While continuing the due diligence phase for a partner, there must be continued exploration of emergency legislative funding to prevent loss of services, and jobs, in the short-run.

Former Executive Director of Southwestern Oregon Workforce Investment Board, President of the Port of Coos Bay Commission, Treasurer for the Oregon Center for Nursing, Previous Treasurer for the Oregon Workforce Partnership, Coos Bay School District Budget Committee Member, Former South Coast ESD Budget Committee Member, Former CCD Board Member, Established the Rural Campus in Coos Bay for OHSU, Established the Southern Oregon Healthcare Industry Partnership, Completed two missions with Doctors Without Borders, Created the Medical Assistant Registered Apprenticeship Program, Expanded SOCC nursing program through targeted investment while with SOWIB.

It is hard to have a fully formed opinion without all of the information regarding the Quorum deal. My preference would be that the hospital remain under local control.

From the information that is publicly available it appears funding, staffing, and maintaining service lines are the biggest challenges facing Bay Area Hospital. I would work to address those issues anyway I could.