SPOKANE, Wash. — Providence announced it will lay off 63 people and close multiple clinics in Spokane and Stevens counties.
On Thursday morning, Providence Inland Northwest said state and federal healthcare cuts and rising costs are prompting the closures.
Providence says it’s facing financial pressure with cuts to Medicaid and Medicare, state legislative policies, denials and delays from insurers, high labor costs, and higher costs for pharmaceuticals and supplies from inflation and tariffs.
Providence expects the issues to be exacerbated with the passing of President Trump’s Big Beautiful Bill, which will cut vital safety-net programs.
Providence said it will close DominiCare and the outpatient Orthopedic Physical Therapy Clinic, both located at St. Joseph’s Hospital in Chewelah. Providence is also closing the outpatient Orthopedic Physical Therapy clinics located in Spokane at Providence St. Luke’s Rehabilitation Medical Center and in Spokane Valley at Providence Medical Park.
Providence says in-patient services and rehab after a stroke or heart attack will not be impacted.
The last day of operations for these clinics will be Friday, October 3.
Providence says orthopedic physical therapy will still be provided at the Providence Mount Carmel Hospital in Colville.
“This decision, though difficult, is a necessary step to ensure that Providence remains agile and responsive to the evolving needs of our community,” said Chief Executive Susan Stacey, RN. “We are committed to delivering high-quality care where it is most needed and enhancing our ability to serve our patients effectively.”
Bob Hoctor runs Summit Rehabilitation Associates, a local private practice offering physical therapy in Spokane County for almost three decades. He said the Providence closures came as a shock and that it could strain already overburdened physical therapy services.
“I think it’s a matter of coming together with those of us who are still here providing the care and services, and hopefully being able to distribute those patients,” he said.
Healthcare leaders say this restructuring is happening across the state.
“These are not good financial times for hospitals, and every indicator is that they’re going to get much worse because of the policy decisions made at the state and federal level,” said Jacqueline Barton True, VP of Advocacy and Rural Health for Washington State Hospital Association.
In June, Providence announced it would lay off 600 people across seven states in mostly non-clinic and administrative roles. You can read the full announcement HERE.
The Washington State Hospital Association says our healthcare system must brace for a lot of unknowns.
“Our hospitals are not going away,” said Barton True. “Our hospitals are going to be there to serve the community, but it’s going to be hard.”
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