St. Michael Medical Center Adjusts Services Amid Financial Pressures

St. Michael Medical Center in Kitsap County, Washington, is making changes to its services, including shifting control of its Sexual Assault Nurse Examiner (SANE) program and closing its Pediatric Outpatient Rehabilitation Clinic, citing ongoing financial challenges within the hospital industry. These adjustments, announced this week, aim to adapt to a difficult financial landscape impacting hospitals across the state.

SANE Program Transition

Effective later in March, the hospital’s SANE program, which has been locally operated since 1997, will be managed by RSI, a Portland-based forensic nursing services organization. According to hospital President Chad Melton, this transition will provide continued support for this vital service. RSI already provides SANE services at other hospitals within the Virginia Mason Franciscan Health system, which includes St. Michael and St. Anthony Hospital in Gig Harbor.

Melton stated the hospital is “grateful to our dedicated team members and are providing transition support, including the possibility of applying for available positions at RSI, so they may continue this significant work.”

Pediatric Outpatient Rehabilitation Clinic Closure

The Pediatric Outpatient Rehabilitation Clinic, offering occupational and physical therapy, is scheduled to close on April 24. Melton explained the closure was determined through a “thoughtful discernment process” necessary to address ongoing financial pressures.

The hospital is working to ensure a smooth transfer of care for impacted patients to alternative therapy providers. Melton emphasized the hospital’s continued “dedication to the health and well-being of all Kitsap County residents and recognize the importance of these services to local children and families.”

Impact on Staff and Patients

While Melton did not specify the number of staff members affected by these changes, he indicated the hospital is working with impacted employees on transition plans, including potential opportunities within the Virginia Mason Franciscan Health system.

Noelle Pacl, a parent whose son receives therapy at the clinic, expressed concern about the impact on the community, particularly for families who may have to travel to Tacoma or Seattle for similar services.

Broader Financial Challenges in the Hospital Industry

These changes at St. Michael Medical Center reflect a wider trend of financial difficulties facing hospitals in Washington state. Many hospitals have experienced ongoing unprofitability since the COVID-19 pandemic, and industry leaders are concerned about the potential impact of new state taxes and cuts to federal Medicaid funding.

Chad Melton currently serves as the Interim President, Puget Sound Market for Virginia Mason Franciscan Health, overseeing operational results and organizational integration across hospitals and facilities in the region. He has been President of St. Michael Medical Center since 2021.