Ritzville, Wash.-based East Adams Rural Healthcare has filed a WARN notice for 108 employees at its Ritzville Hospital, effective Jan. 7, as the facility faces potential bankruptcy or closure due to “severe financial difficulties.”
The 108 employees include full-, part-time and on-call staff, with the possibility of layoffs being permanent, the notice said. EARH comprises its Ritzville-based hospital, the Ritzville Clinic and Emergency Services and a mobile unit, according to its website.
Ritzville Hospital sustained $13.4 million in losses over 2022, 2023 and 2024. While the hospital is scheduled to break even at year-end 2025 due to receiving $2 million from the Washington State Hospital Distressed funds in July, debt accumulated during prior years remains unresolved and vendors are unable to continue services without pay, the notice said.
In a note to EARH employees, also included in the WARN notice, interim CEO Todd Nida stressed that the notice for potential layoffs is a “technical requirement,” and that the system is working to ensure this will not be the outcome.
Mr. Nida pointed to potential solutions, including lawmaker support in pursuing legislation that could shift the hospital from a critical access facility to a rural emergency hospital, partnerships with multiple foundations, assistance from government liaison John Coulton and work from EARH’s audit firm DZA to help secure funding and legislative support. Tacoma, Wash.-based MultiCare Health System is also standing by EARH to provide support.
“We are working hard to ensure EARH remains a vibrant and permanent part of this community,” Mr. Nida said. “We will continue to communicate openly and frequently with our employees and community.”
Becker’s has reached out to EARH for comment and will update this story should more information become available.
