KVH responds to risk of closure report

Hospital District reaffirms commitment to local care

GOLDENDALE, Wash. April 8, 2025 - Klickitat Valley Health remains committed to providing compassionate, local access to high-quality health care, despite being named in a recent report as a hospital “at risk of closure.”

The report, issued by the Cecil G. Sheps Center for Health Services Research, included KVH on a list of rural hospitals at risk due to expected cuts in Medicaid funding. KVH was not contacted before the report was published and does not believe the designation reflects its current operations or financial outlook.

The Washington State Hospital Association has reviewed the list and found discrepancies between the Sheps Center’s data and the state’s own findings. Inclusion in the report does not mean a hospital is on the verge of closing.

However, recent federal and state policy changes are expected to present financial challenges. The One Big Beautiful Bill Act, combined with new taxes and reduced state funding, could significantly affect hospitals that serve a high percentage of Medicaid patients.

At KVH, about 26% of patients are covered by Apple Health, Washington’s Medicaid program. This funding is essential to continuing care for vulnerable populations in the community.

Hospital officials are reviewing how these changes will affect operations. Some funding reductions could begin as early as 2026, while others are scheduled for 2027 and beyond. KVH currently has no plans to cut services or close, and hospital leadership is working with the board to make proactive decisions that protect both patients and staff.

Patients enrolled in Apple Health are encouraged to stay informed. New requirements will soon ask enrollees to verify eligibility every six months. Most will still qualify, but coverage may be lost due to missed paperwork or deadlines. KVH staff are preparing to assist community members through the new process.

While the legislation presents challenges, there is cause for optimism. Earlier versions of the bill would have ended key programs, such as Directed Payment Programs, immediately. Thanks to advocacy efforts, including support from U.S. Rep. Dan Newhouse, those cuts are now being phased in gradually.

KVH is also one of eight hospitals nationwide selected for the Rural Hospital Stabilization Program. Over the next 18 to 24 months, the hospital will work with outside experts to assess services, improve efficiency and identify new revenue opportunities.

In addition, the bill establishes a Rural Health Transformation Fund, which provides $50 billion in grants over five years. KVH has secured more than $20 million in competitive grants over the past eight years and is well positioned to pursue future funding.

KVH leadership emphasized that while challenges lie ahead, the hospital has time, tools and a plan to navigate them.

“We’re here. We’re committed. And we’ll continue to fight for the future of rural health care in Washington,” the hospital said in a statement.