FOR IMMEDIATE RELEASE
1/30/2018 12:00:00 AM
1/30/2018 7:26:45 AM
Trios Health to discontinue some outpatient therapy services
Kennewick, Wash. – Effective February 28, 2018, Trios Health will discontinue some of its outpatient therapy services, including physical therapy, occupational therapy, and speech-language services. Outpatient cardiac rehab and pulmonary rehab will continue. All inpatient therapy services (for admitted patients) will not change.
“The challenge has been—and continues to be—that the service line’s revenues, which include reimbursements from insurances, do not cover the cost of delivering the services. And, they haven’t for years,” said Craig Cudworth, chief executive officer. “Despite our best efforts to find ways to cover the losses and preserve these outpatient services, we have arrived at a point that we must make a difficult change or suffer further consequences to Trios Health at a time when we cannot afford to lose ground.”
Outpatient physical therapy, occupational therapy, and speech-language services contributed approximately
-$450,000 to Trios Health’s financials in 2017. “The losses have everything to do with the lower reimbursements from Medicare and Medicaid and nothing to do with the high-quality and compassionate care that our staff have given their patients,” Cudworth said. “We have a disproportionately high number of patients with these coverages in comparison to the other local hospitals. We literally receive pennies on the dollar in reimbursements and, no matter what we do, we can’t make the math work in our favor.”
The department staff were notified late Thursday. “Even as we are all processing this development, we are quickly working to move displaced staff into other available positions, where possible, and helping others locate employment with other local therapy service providers in the community,” Cudworth said.
“As we considered various paths to remedy the situation, in addition to concern for our employees and minimizing financial erosion for Trios Health, we were very concerned for our patients who have relied on us for outpatient therapy services,” Cudworth added. “The prevalence of other qualified outpatient therapy services in the Tri-Cities and knowing that our patients will continue to receive care was some consolation as we made this difficult decision.”
Patient letters are being mailed today with substantial focus and effort being put into a smooth transition for patients.
Trios Health is continuing negotiations with its key creditors as part of its Chapter 9 filing and to prepare a bankruptcy plan to present to the court. Discussions with RCCH and University of Washington Medicine about a potential relationship post-bankruptcy plan filing also continue. “This process has taken a lot longer than anyone expected. But we firmly believe that we will soon come to agreement and be in a position to move forward—out of bankruptcy and as a stronger asset for this community,” Cudworth said. “The service adjustments we’re making in the interim—such as those to our Therapy Services department—will better position us to achieve that.”