Tacoma, Wash.-based MultiCare Health System has shared plans to eliminate approximately 138 positions across the organization amid ongoing industry pressures.
Of the positions, 83 are part of MultiCare’s decision to close multiple clinics in Spokane, Wash., with the remaining positions a mix of leadership and support services roles, according to a Sept. 9 statement from the health system.
Notifications to affected team members concluded Sept. 8.
The system’s Rockwood Clinic in Spokane, Wash., will close the Access Clinic Oct. 27, MultiCare Dermatology Dec. 4 and the Rockwood Eye Clinics Dec. 31, a spokesperson for the health system confirmed Sept. 6 with Becker’s.
The closures also include MultiCare Rockwood’s Northpointe and downtown locations. However, the downtown location will offer limited services for medical retinas through June 2027.
Staff and providers are among the 83 eliminated positions. MultiCare said it is working with them to offer information, resources and support regarding other available opportunities at the system.
MultiCare pointed to a 5.1% year-to-date increase in operating revenue against a 7.3% labor cost hike, an approximately 9% to 10% increase in supply and pharmaceutical expenses that also outpaced revenue growth and federal policy changes like HR 1 as headwinds on the system’s finances.
The federal policy changes are expected to exert continual financial pressure, including an estimated $10 million impact in fiscal year 2026 related to noncitizen Medicaid coverage changes, which will be followed by an estimated $76 million annual reduction in Medicaid funding starting in October 2027.
MultiCare estimates that approximately $1.5 billion in reduced funding will occur between 2026 and 2034.
“In response to these external and internal pressures, and consistent with our stewardship responsibilities, MultiCare has undertaken a comprehensive review of operations across the organization to identify opportunities to improve efficiency, simplify administrative functions, reduce costs and better align resources with our strategic priorities,” the statement said.
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