CONFIRMED: Kootenai Health Facing Severe Financial Crisis and “Potential Default” on Debt

The Looting Has Begun

Idaho Tribune recently broke the story that Kootenai Health was facing a financial crisis, and that the Board of Trustees was considering restructuring the hospital to a 501(c)3 non-profit to cut the taxpayers out of the loop. Just days after publishing, everything in that report has been confirmed.

At their board meeting, 3 days after our article was released, Kootenai Health outside legal counsel Joel Hazel confirmed that if the hospital district became a non-profit, they would not have to hold a vote to sell or lease the hospital to an outside company:

In the clip above, Kootenai Health trustee David Bobbit asked, “If you transfer it to the non-profit, say 3 years down the road, can that non-profit sell the real-estate without a vote?”

Joel Hazel’s one word answer? “Yes.”

Kimberly Webb, the CFO of Kootenai Health confirmed our claims that the hospital is losing money hand over fist, with contract labor expenses surging from $7 million per year, to over $6 million every single month.

To make matters even worse, Kimberly Webb stated in her report to the board that Kootenai Health might face a “potential default” on their debt by May of 2023.

Just hours after their board meeting concluded, Kootenai Health released a “FAQ” about becoming a 501(c)3 non-profit. In the document, the primary reason the hospital is interested in switching structures is to more closely align with their “Vision 2030.” The document states:

The board is continually looking at opportunities to improve how Kootenai Health serves its patients and community as highlighted in its 2030 vision statement: “boldly transforming the health care experience.” This requires the board to look at all aspects of operations, including the review of a model used by many leading health care organizations in Idaho and beyond. Today, Kootenai Health is one of only two district hospitals of its size left in the Northwest as others have transitioned to models with greater flexibility for modern operations.

When the hospital board meets, they do not record and publish their board meetings for the public to review, so the Idaho Tribune has recorded this month’s meeting and uploaded it to YouTube in an effort to keep the tax paying citizens of this county informed.

We have also taken the liberty of clipping out some of the more relevant moments from the board meeting, and you can view them in this thread on Twitter.