RITZVILLE — East Adams Rural Healthcare has developed a plan to avoid closure after facing $10 million in debt, but the changes will significantly reduce services available to the rural community.
The hospital will transition to a rural emergency hospital model, which allows it to receive Medicare funding while cutting certain services. The facility will maintain emergency services, a walk-in clinic for short-term stays and 911 transfers, but will eliminate its primary care clinic and up to 14 staff positions within 30-60 days.
“We believe the new rural emergency hospital model is sustainable and that it will provide critical access and emergency care for the Ritzville community and for all those who travel along the I-90 and 395 corridors,” said Todd Nida, East Adams Rural Healthcare CEO.
Hospital leaders have reached settlements with their two largest creditors, covering $3.9 million of the $5.3 million in total claims. They are working to negotiate agreements with 175 creditors for the remaining $1.4 million in debt.
“So, we’ve resolved essentially 3.9 million of the 5.3 million of claims today. But we still have work to do because that means there’s about 1.4 million that still have to be paid,” said Shaun Cross, the hospital’s corporate reorganization legal counsel.
If agreements cannot be reached with remaining creditors, the hospital may file for bankruptcy but would remain open. The community recently approved a levy for emergency medical services, though a second hospital levy failed.
“I believe firmly that the only way to rebuild that trust is transparency,” Nida said, acknowledging the need to regain community confidence.
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