NEWS MyEagleNews.com Wednesday, May 18, 2022 A7 St. Charles system in the red By SUZANNE ROIG The Bulletin BEND — The fi rst three months of the year has left St. Charles Health System with a $17.2 million operating loss, the hospital reported in an email to its employees. The cause is a confl uence of events that have taken two years to brew, said Matt Swaff ord, St. Charles Health System chief fi nancial offi cer. Since the start of the pandemic, St. Charles has operated at, or above, full capacity, at times paying wages that were three times higher than pre-pandemic rates and, until recently, delayed the return of the profi table private-pay sur- geries that were put on hold to keep hospital beds and staff free for COVID-19 patients. If the four-hospital system can’t address the fi nancial prob- lem, it could mean a partner- ing with another hospital or an elimination of services, Swaf- ford said. But those actions would be the last resort, Swaff ord said. “We are not focused on that right now because we feel the most important thing we can do now is keep St. Charles a local, region-focused system,” Swaf- ford said. “We’re making less money and losing money.” St. Charles is not the only hospital in Oregon to fi nd its balance sheet in the red. The majority of the state’s 62 hos- pitals are struggling fi nancially, making decisions to boost rev- enues and cut expenses, said Becky Hultberg, Oregon Asso- ciation of Hospitals and Health Systems president and CEO. A recent study of fi nances at Oregon’s hospitals revealed 42% of them ended the fi rst quarter losing money, Hultberg said. “Central and Southern Ore- gon were disproportionately hit hard because of a smaller labor pool and they had to cancel sur- geries,” Hultberg said. “It’s happening here and elsewhere. The challenge is that costs have increased signifi cantly and rev- enues have not. “It’s been a diffi cult two years. The pandemic has sig- nifi cantly impacted hospi- tals’ fi nances to the point that we might see reduction in ser- vices,” she said. In Oregon, the cost of hospi- tal labor rose 13% this year over 2019, which increased operating expenses 11%, Hultberg said. In fact, Oregon hospitals have experienced fi ve consec- utive quarters where expenses outpaced revenues, she said. Fortunately no hospitals have Submitted Photo Front entrance of St. Charles Bend, one of four hospitals in Cen- tral Oregon operated by St. Charles Health System. failed, Hultberg said. But given the current cli- mate, that is not outside the realm of possibility. “It’s incredibly important for hospitals to be solvent,” she said. “The state needs to do more to help with nursing licen- sure to ease the workforce front. We need that now. And we need to reduce the administrative burden because hospital fi nan- cial stability is critical to a com- munity’s health.” In an email to its staff , St. Charles reported that its eff orts have trimmed $8.8 million from forecast spending, and while surgical volumes have increased, they are still below the 1,500 surgeries a month pre-pandemic. St. Charles ended 2020, the year fi nancial data are most current, with $863.6 million in operating revenues and $862.3 million in operating expenses. In the year ending 2021, the operating revenue totaled $973.4 million, and operating expenses totaled $989.8 mil- lion, according to the health sys- tem’s consolidated statements. Swaff ord said the losses would have been more pro- nounced had the hospital system not received advanced payments and grants, Swaff ord said. “You can only run at 107% capacity for a period of time,” Swaff ord said. “We make money off of surgeries and we’ve had two years where we haven’t had a full day of sched- uled surgeries.” And while the hospital has acquired healthy reserves, like any household budget, it’s not wise to continue to tap into sav- ings, he said. Those reserves are Close races could drag into June By GARY A. WARNER Oregon Capital Bureau SALEM — Gov. Kate Brown’s political career began in earnest when she won the Democratic primary for a House seat by seven votes. That’s a landslide compared to Rep. Jack Zika, R-Redmond. He won his 2018 GOP primary by just two votes. Closed 2022 primaries exclude more than 1 mil- lion non-affi liated voters from choosing the Democratic and Republican nominees for gov- ernor, U.S. Senate, congress and the Legislature. Several races feature large fi elds of candidates — 34 total in the race for governor alone. Put together, the possibility of election squeakers is high. Add in a new twist for 2022: The May 17 election night doesn’t end at 8 p.m. as per usual. A change approved by the Legislature last year requires any ballot with a postmark of May 17 or before to be counted through May 24. The potential for some see- sawing returns and delayed fi nal results is high. “The nightmare scenario is any race that is closer than 1.5% to 2% on election night,” said Jim Moore, outreach direc- tor for Tom McCall Center for Civic Engagement at Pacifi c University. With potential recounts, the fi nal results could be delayed for a month or more. Final recount demands must be fi led with the Secretary of State by June 21 and an Election Day Report is due from the offi ce on July 15. Moore said studies of Wash- ington state’s postmark law show relatively little wobble between the primary day and the postmark deadline. But the 2022 primary is Ore- gon’s fi rst experience with a sys- tem that will mean a more drawn- out offi cial end to the election. Adding to worries is the bal- loting comes as former President Donald Trump uses the 2022 election campaigns to repeat his debunked claim that the 2020 presidential election was sto- len by President Joe Biden. Any snag will be cast in harsh light. “We know this is big with Republicans,” Moore said. “We’ll see if there are com- plaints in their primary. Maybe the Republicans will say ‘wait for everything to come in.’ But if a candidate says ‘this looks like it could be stolen’ and wants an independent audit, then it could get interesting.” Secretary of State Shemia Fagan has mounted a major public information campaign of television, radio and digital ads to explain the rule changes to Oregon voters in hopes of heading off complaints and misunderstandings. “The new law could mean that very close contests will not be decided on election night,” Fagan said in a statement last week. “Even if the results come in a little slower, they will be accurate.” The Secretary of State’s tally of ballots on Tuesday showed 288,337 have been returned out of 2,952,330 mailed to voters. That is 9.2% of all ballots sent to Oregon voters. The low- est return percentage of Oregon’s 36 counties is Deschutes County at 7.7%. Multnomah County, which includes Portland, has returned just 8.8% of the 557,702 ballots sent to residents. Several less populated coun- ties have returned twice that number, with Grant County lead- ing the count at 20.3% of ballots returned. But the percentage of total ballots returned is misleading. The voting is likely much far- ther along than the Secretary of State’s numbers suggest. Non-presidential primary elections have low turnout — 33.91% in 2018. Adjusted for an increase in voters in 2022, the same turnout would put ballot returns at just under 28.8%. The fi nal voting tally could rise or fall on a number of fac- tors, driving higher numbers A MAN WAKES UP in the morning after sleeping on... an advertised bed, in advertised pajamas. Blue Mountain Eagle MyEagleNews.com have attracted a bumper crop of candidates. Voters will cast ballots for six congressional seats, one more than the last election, awarded to Oregon due to its rapid popu- lation growth over the previous decade. There are two exceedingly rare open seats in the U.S. House. The new 6th Congressional District seat centered around Salem has attracted nine Dem- ocrats and seven Republicans. The 4th Congressional Dis- trict seat is open due to the retirement of U.S. Rep. Peter DeFazio, D-Springfi eld. After DeFazio announced late last year that he wouldn’t seek another term, he endorsed Labor Commissioner Val Hoyle, who dropped her bid for re-election to run for the seat. But seven other Democrats fi led to run. Alex Skarlatos of Roseburg is the only Republican in the race. U.S. Rep. Kurt Schrader, D-Canby, is running in a largely redrawn district that now stretches from Portland, over the Cascades, to Bend and parts of Deschutes County. Schrader is being challenged in the Democratic primary by attorney Jamie McLeod-Skin- ner of Crooked River Ranch. The race has drawn multiple Republican candidates as well. aries, eliminating executive positions.” According to federal income forms fi led, Joe Sluka, St. Charles Health System presi- dent and CEO, was paid $1.2 million in reportable compen- sation in 2020, the most current year data are available. To fi nd places to trim costs, the health system has: • Reviewed any open po- sitions and eliminated those that can go unfi lled, unless it can replace a worker who is being paid at higher traveling rates. • Reviewed leadership structures. • Created effi ciencies be- tween St. Charles Medical Group and the hospital to streamline processes. • Reduced the need for traveling workers. • Limited incentive pay programs and providing those to services that sup- port long-term viability. “Those are exactly the wrong choices to make,” Palmer said. “Fewer staff mem- bers and fewer nurses means more stress and strain on the staff who remain. That means it becomes harder to recruit good staff and incredibly diffi cult to keep the nurses who are already here.” Storms transform NE Oregon snowpack By JAYSON JACOBY Baker City Herald BAKER CITY — April showers couldn’t completely make up for a meager winter snowpack in the mountains of Northeastern Oregon. But the month put on a pretty fair rally. And so far May has main- tained the momentum, with snow falling not only in the mountains but also, most recently on Sunday, May 8, and Monday, May 9, in the valleys. A persistent weather pat- tern over the past month that has pushed cool storms through the region regu- larly, laden with Pacifi c mois- ture, has transformed a pal- try snowpack into one that, in some places, has soared well above average. Statistics illus- trate how stark the reversal has been. During March, which in many years is the snowiest month at higher elevations, the water content in the snow — the statistic that best pre- dicts summer water supplies — dropped at 13 of 17 mea- suring sites around the region. The water content was below average at all of those places by the end of March. But the storms of April had a profound eff ect. At High Ridge, for instance, in the northern Blue Mountains near Tollgate, the water content at the start of April was 17.8 inches — 74% of average. By month’s end the water content had risen to 21.6 inches. More notably, that fi g- ure was 177% of average. A similar trend prevailed at some other sites: • Moss Springs above Cove — 76% of average at the start of April, 117% at the end. • Bald Mountain, near Moss Springs — 59% to 109%. • Mount Howard, near Wal- lowa Lake — 84% to 106%. • Aneroid Lake, Eagle Cap Wilderness south of Wallowa Lake — 61% to 74%. Jason Yencopal, Baker County emergency manage- ment director who also does snow surveys, plodded through the drifts to a meadow just east of Anthony Lake on the fi rst day of May. He measured 64 inches of snow — up from 49 inches at the end of March. The water content rose during April from 19.5 inches — 61% of average — to 25.5 inches, 91% of average. STRUCTION, LL N O C C AW Featuring: Shawna Clark, DNP, FNP 541-575-1263 235 S. Canyon Blvd. John Day, Oregon 97845 Accepting new Patients! Go to: www.canyoncreekclinic.com • • • • • Roofing • General Construction Remodeling Fences Decks Storage Sheds Andy Wolfer 541-910-6609 and Much More! CCB#186113 Burnt River School District Now enrolling students for Fall 2022! Audrey Bremner! Eastern Oregon University is pleased to announce the hiring of Audrey Bremner as our new Grant County Business Advisor! To schedule an appointment for no-cost, confidential business advising, you may reach Audrey by calling 541-620-2716 or by emailing eousbdc@gmail.com. S286526-1 He will bathe in an ADVERTISED TUB, shave with an ADVERTISED RAZOR, have a breakfast of ADVERTISED JUICE, cereal and toast, toasted in an ADVERTISED TOASTER, put on ADVERTISED CLOTHES and glance at his ADVERTISED WATCH. He’ll ride to work in his ADVERTISED CAR, sit at an ADVERTISED DESK and write with an ADVERTISED PEN. Yet this person hesitates to advertise, saying that advertising doesn’t pay. Finally, when his non-advertised business is going under, HE’LL ADVERTISE IT FOR SALE. Then it’s too late. AND THEY SAY ADVERTISING DOESN’T WORK? DON’T MAKE THIS SAME MISTAKE Advertising is an investment, not an expense. Think about it! of ballots but also a more frag- mented tally. An open governor’s offi ce, redistricting and a new congres- sional seat has uncorked a torrent of suppressed political ambition. With Gov. Kate Brown unable to seek re-election because of term limits, there is no incumbent on the ballot for the fi rst time since 2010. Even that year, former Gov. John Kitzhaber was seeking (and would eventu- ally win) a return to offi ce. The last ballot without an incumbent — or Kitzhaber — was in 2002. This year the race for gover- nor has drawn 19 Republicans and 15 Democrats. One each will remain after the primary. Former Sen. Betsy John- son, D-Scappoose, is mounting a well-fi nanced “unaffi liated” bid that would require submit- ting about 24,000 valid signa- tures to the Secretary of State by the end of August to be placed on the November ballot. Redistricting approved last year for the 2022 election has moved congressional and legis- lative district lines. A high-speed game of political musical chairs played out since September involving retirements, candidates changing races, and head-on col- lisions between offi ceholders seeking new jobs. The races for Congress not only for future expansion, but equipment replacement and growth, he said. “It’s been a couple of years of digging deep and re-exam- ining how we do things around the system,” Swaff ord said. “We don’t make money on a lot of the services we provide. Sev- enty-fi ve percent of the reve- nue comes from Medicare and Medicaid patients. Those two pay a fraction of the cost of what it requires to operate. “The pandemic has revealed how fragile that is across the country.” The Oregon Nurses Associ- ation said it is unfair for the hos- pital to place the blame of fi nan- cial loss on the fact that nursing costs have risen, said Scott Palmer, association director of communications. The hospital has reserves and has an invest- ment portfolio that generated $47 million in earnings, Palmer said. “To hear St. Charles put the blame on the backs of nurses and other frontline health care workers who have been work- ing tirelessly to provide essen- tial care for our community during the pandemic, is shame- ful,” Palmer said. “Nurses are asking if St. Charles is con- sidering reducing executive pay, lowering executive sal- Don’t get left behind, call today! Kim Kell 541-575-0710