Medical staff for the Whidbey Island Hospital District held a vote of no confidence in CEO Ronald Telles and two other members of the administration last week.
Ron Wallin, president of the hospital board, said the commissioners were “caught completely off guard” by the vote and plan to discuss the matter with medical staff during an executive session later this month.
“We will put together a game plan moving forward,” he said.
The medical staff voted no confidence in Telles, Dr. Garth Miller, who is the chief operating officer, and hospital attorney Jake Kempton. Wallin said about 40 people took part in the vote.
The medical staff are primary-level providers, such as doctors and nurse practitioners. They include both those who work for the hospital and are affiliated.
Wallin said he was unclear what the medical staff members’ specific complaints are, although he believes hospital finances and ongoing phone and other IT problems are among the concerns.
The hospital’s chief of staff, Dr. Judye Scheidt, was unavailable for comment.
The vote came after a few members of the Medical Staff Committee formally requested it during a Jan. 31 meeting. Wallin said it was not the usual procedure for such an action.
A statement from the hospital district promises that the vote will not affect the hospital’s continued focus and that Telles said the administration “will take direction from our Board of Commissioners to determine the best way forward.”
“Mr. Telles would like to assure our community – our staff, our patients – that WhidbeyHealth leadership remains dedicated to our mission, vision and values and will continue to work towards implementing our Strategic Plan,” according to the statement.
Wallin said board meetings haven’t been held in person for two years and the medical staff may not be aware of what is happening “behind the scenes” to make improvements.
The hospital district’s levy lid lift passed by voters in November will add $6 million a year to the hospital’s $115 million operating budget. The hospital promised that it would be used to recruit staff, retain existing staff by paying a living wage and improve information technology and communications systems, but money won’t be available until the end of the second fiscal quarter.
The hospital was struggling financially even before the pandemic and then things got worse as COVID-19 restrictions cut revenues while safety precautions raised costs.
In June 2020, ratings agency Moody’s downgraded the district’s general obligation limited tax bonds to Baa3, which is one step above speculative grade.
Last year, hospital officials reported having days of negative cash on hand, which means more outgoing than incoming money. Currently the hospital has 20 days of cash on hand.
In August, the state Auditor’s Office issued two findings against the Whidbey Island Hospital District in an audit report covering Jan. 1, 2019 through Dec. 31, 2020. The audit found that the hospital district is two years behind in submitting complete and accurate annual financial reports. In addition, the audit report states that the district doesn’t have adequate controls to prevent the misappropriation or misuse of “theft-sensitive assets.”
While Wallin said he didn’t think salaries are the reason for the doctors’ concerns, they may be for other hospital employees.
UFCW 21, which represents some professional and technical staff, complained last year about the hospital using “unprofitability” as an excuse not to give wage increases while “directing money towards management’s salaries and other projects.”
A hospital spokesperson said last month that the administration is working to ensure all employees earn $18 an hour or higher. In December of last year, all non-contracted staff members had wages adjusted to a minimum of $18 an hour while the administration continues to talk with bargaining units.
