Renton, Wash.-based Valley Medical Center laid off 101 employees after federal Medicaid benefits ended Dec. 31 without notice.
Employees affected by the layoffs include roles in leadership, support, nonclinical and ancillary departments, a spokesperson for the hospital said in a March 26 statement shared with Becker’s.
“The state submitted the application to continue the Medicaid directed pay program by the deadline last Fall for calendar year 2025,” the spokesperson said. “We found out through the Washington State Hospital Association in February that the previous administration did not renew the program by January 20, 2025 and so far the current administration hasn’t approved it either for this calendar year. There is no indication that they will.”
The funds contributed $80 million to $100 million to Valley Medical Center’s budget, with around 64% of its care reimbursement dependent on state and federal funding.
“Non-mission critical projects, positions and programs” were paused at the hospital prior to the layoffs, the spokesperson said, adding that the hospital does not expect patient care to be affected.
