King County Superior Court on June 26 denied a labor union’s request to halt layoffs and clinic closures at Renton, Wash.-based Valley Medical Center, a spokesperson for the hospital confirmed to Becker’s.
The 321-bed acute care hospital laid off 101 employees in March followed by more workforce and service cuts in May. It is shifting staffing models from part-time to full-time across most departments, affecting more than 50% of its workforce, a spokesperson for the hospital said in a May 12 statement shared with Becker’s.
Additional service cuts include the closure of the Northwest Pavilion adult and pediatric inpatient units and five outpatient clinics in Kent, Renton, and Covington, Wash. The closures are effective June 27.
SEIU Healthcare 1199 Northwest, the union that represents more than 2,400 healthcare workers at the hospital, argues Valley Medical Center justified the cuts based on the “cancelled” federal Medicaid directed payments funding — despite assurances that the payments would soon be reinstated.
“On May 29, 2025, via internal communication, Valley leadership acknowledged that the Medicaid funding they claimed was cancelled December 2024 was being restored for calendar year 2025,” SEIU said in a June 24 news release. “Their message described the development as ‘a relief and an encouraging sign,’ while also noting that financial challenges remain.”
Following the May 29 announcement, Valley Medical Center’s board of commissioners and board of trustees unanimously passed resolutions to pause the cuts and explore alternative options. The board of trustees emphasized that the hospital must suspend closures and related personnel actions, including layoffs, to allow time for proper evaluation of other options, according to SEIU.
Despite these resolutions, hospital leadership proceeded with plans to cut services. On June 9, Valley CEO Jeannine Grinnell notified SEIU that the layoffs and clinic closures would move forward.
“Our South King County community deserves transparency and integrity from Valley Medical Center leadership,” Jane Hopkins, RN, president of SEIU Healthcare 1199NW, said. “As a union, we strive to maintain a respectful, honest relationship with administrators at Valley, but we will not stand by while care is cut and jobs are lost despite a resolution from the Board to pause the changes. The well-being of an entire community is at risk.”
Financial records from Valley Medical Center — including its 2024 end-of-year report, audited financial statement and third-quarter 2025 report — indicate the hospital ended fiscal 2024 with more than $50 million in profit. The hospital’s current fiscal year ends June 30, 2025, with the next report expected to detail incoming public funding from federal, state, and hospital district sources, according to SEIU.
According to the union, Valley Medical Center appears to be the only hospital that implemented cuts in response to delayed federal Medicaid payments, “raising concerns” about its financial decision-making.
“Through our union and with this legal action, healthcare workers like me are advocating for patients, for our community, and for our own coworkers who are proud to work here,” said Jake McMurray, an interventional radiology tech and member of SEIU. “Valley leadership needs to do better. The decline in transparency and trustworthiness coming from the top over the past few years is alarming. With these cuts, Valley is moving in the wrong direction. We’ll keep fighting to protect care in South King County.”
