WHIDBEY: Patient volumes at WhidbeyHealth drive revenue jump

Jessie Stensland reports from the Whidbey Island Public Hospital District board meeting of Thu., May 22, 2025 for the Whidbey News-Times. Read the whole story.

While hospital officials across the state and nation are scrambling to understand the impacts of potential cuts to Medicare and Medicaid, WhidbeyHealth has good financial news, largely due to an increase in the number of patients, according to hospital CEO Nathan Staggs.

“In health care, it’s a volume thing,” Staggs said in a recent interview. “Things are headed the right way, and they are improving month after month.”

The hospital district experienced a net surplus of $900,000 in the month of April, which exceeded the budget projection by 528%. At a hospital board meeting last month, CFO Paul Rogers said it was the first operating budget surplus he’s seen since coming to work at WhidbeyHealth.

They Said It

In April, the hospital experienced an increase of 71% in patient days and the patient daily census. Staggs said the district has added 40 new providers in the last year, which means more patients can be seen. Still, he acknowledged that patients often wait too long to see a provider, which he said is a problem that officials are working on. Even more providers are being hired so that the district doesn’t have to rely on overtime and temporary providers as much.

In addition, the CEO said a new clearinghouse is doing a better job of collecting claims in a timely manner, which helps with the bottom line.

Staggs said the hospital district is somewhat insulated from changes in Medicare and Medicaid funding. As a designated Critical Access Hospital, WhidbeyHealth receives cost-based reimbursements in Medicare services; about half of the hospital’s patients are on Medicare.

Staggs said that Medicaid patients make up just 13% of those served at WhidbeyHealth, which is significantly less than other hospitals in the nation.

Staggs said he’s waiting to see how the state budget will affect the hospital. The Washington State Hospital Association estimated that tax hikes and cuts in the state budget will cost hospitals an estimated $200 million annually, according to a press release from state Sen. Ron Muzzall, a Republican from Oak Harbor.

“We need policies that actually support our health care providers, not punish them,” Muzzall said in a press release. “The Legislature must act before we see the collapse of more clinics, more departments, and eventually, entire hospitals.”

On the Ballot in 2025