WHIDBEY NEWS-TIMES: County turns down hospital’s request to co-sign loan

Jessie Stensland reports:

The same day that Moody’s Investors Services downgraded WhidbeyHealth’s bond ratings to below investor grade due to “severe liquidity problems,” two hospital commissioners and the chief financial officer asked the Island County Board of Commissioners to co-sign a loan.

The county commissioners turned them down during the Wednesday work session, citing financial policy, but expressed grave concerns about the hospital’s future.

They Said It

“We have run out of money. We have gone to the banks. We have been turned down,” [Hospital Commissioner James Golder said. “Our credit rating today was dropped to a B3. We have barely enough money to make one more payroll. Once that payroll is done, we’re out. If we close our doors, we’re looking at 700 people without jobs.” …Golder said he reached out to local lawmakers but didn’t hear back from them.

State Sen. Ron Muzzall, R-Oak Harbor, said neither he nor his staff have heard from any hospital officials. He explained that it would be best if a united board had contacted him, but that didn’t happen.

Rep. Dave Paul, D-Oak Harbor, said he spoke with Golder, but it was too late to get anything in the budget this session. He said he has been in contact with the governor’s office, and the governor’s staff is working with the Health Care Authority to see if there’s a way to help the hospital.

Rep. Greg Gilday, R-Camano, said his staff spoke with the hospital commissioner this week. Gilday said he has asked for written information about the issue.

“At a minimum, we must protect critical care access as (WhidbeyHealth) works through this financial crisis,” [Island County Commissioner Janet St. Clair] wrote in an email to local lawmakers.

Wednesday, Hospital Commissioner Nancy Fey criticized the newspapers for reports on the hospital’s problems and gave the commissioners bogus information. “We have a letter ready to go to the paper but they have told us that it won’t get printed,” she said. “The only way we can get it printed is if we buy an ad.”

She was wrong.

Fey also gave an example of an “inaccuracy” in a story about Mike Layfield, who will start as interim CEO next week. The story explained that he had been a CEO of a hospital that went bankrupt, but Fey said he was only hired for a few months to take the hospital through bankruptcy.

She was wrong.