Olympic Medical Center board asks for more transparency from leaders

Published 1:30 am Saturday, April 18, 2026

PORT ANGELES — Olympic Medical Center commissioners are seeking improved communication and information sharing with administration about proposed changes to the leadership model at the hospital’s clinics.

The structure and operations of Olympic Medical Physicians is being evaluated as part of a broader effort to improve efficiency, reduce waiting lists and match capacity with patient demand, Chief Medical Officer Scott Kennedy said Wednesday.

The discussion came as Chief Physician Officer Allen Chen, who leads Olympic Medical Physicians, is resigning effective in June.

The job description for his replacement indicates Chen’s role may shift toward an administrative position focused on operations.

Kennedy, speaking on behalf of Interim CEO Mark Gregson, who was not at the meeting, said the hospital is considering an administrative leader with a master’s of business administration degree or master’s of health administration and experience running complex clinic systems.

That approach would require separating clinical and administrative leadership, with one physician focused on patient care and another leader focused on day-to-day operations, rather than one person overseeing both, as is now the case.

Commissioner Nancy Field said many health care organizations use a dual-leadership model because it is difficult for one person to effectively handle two different roles.

Field said she didn’t question the need for reorganization, but it would be difficult for the board to evaluate the effort if it doesn’t know what the goals are and how outcomes would be measured.

Board President Phil Giuntoli said the changes being considered are being driven by the hospital’s finances and compliance problems.

“We lost $70 million in four years, [and] our quality issues with CMS,” Giuntoli said. “Those are two things that are the drivers for everything that’s going on in the hospital right now.”

Kennedy said the administration’s focus is to “stop the bleeding, stabilize and grow volume.”

Commissioners pointed to a lack of communication from administration about the restructuring, saying they are fielding a steady stream calls from anxious providers and staff who want to know what is happening.

Commissioner Carleen Bensen urged more openness.

“We need more transparency — the rumor mill is working and administration is not being forthcoming,” Bensen said.

Speculation is filling the vacuum.

“When there’s no news, people make up news,” Commissioner Thom Oblak said.

Kennedy shifted to the challenges that face OMC.

“We can’t keep doing the same things,” he said. “We need to support clinicians better, address waiting backlogs and understand demand.”

Clinic visits

Interim CFO Dennis Stillman presented data showing the hospital’s clinics currently average about 620 visits per business day but have capacity for up to 686 visits.

That raised a key question from the board, that if OMC has the physical capacity, why do patient backlogs persist?

Stillman said that while OMC demonstrated it could handle higher volumes, it is unclear what is limiting access. He added that more analysis is needed to better understand scheduling barriers.

He said seeing more patients is key to improving OMC’s finances because about 80 percent of costs are fixed regardless of volume.

Board members asked for more detailed data by department and type of care to help guide decisions. Stillman said that level of detail isn’t yet in place but is being developed.

Telemedicine

Kennedy said OMC and UW Medicine are finalizing agreements to expand telemedicine services, including a master services agreement that would support programs such as stroke, cardiology and other specialty care.

During public comment, representatives from UW Medicine responded virtually to a question raised during their April 1 visit to the hospital from a member of the public who asked what it would gain from a potential partnership with OMC as the two organizations evaluate a possible affiliation.

Ian Goodhew, UW Medicine’s chief external affairs officer, said public hospitals face increasing pressure from consolidation in the healthcare industry, including the expansion of for-profit systems and private equity.

“Public hospitals need to stick together,” he said. “The only way we’re going to survive is by partnering, delivering care that benefits both communities, good for patients and financially viable for both.”

Safety compliance

Liz Urega, OMC’s director of quality support services, told the board that recent DNV accreditation surveys found no serious problems.

A comprehensive review conducted March 31 to April 2 didn’t identify any major safety issues, and a follow-up inspection April 8, prompted by a complaint about emergency department care, was found to be unsubstantiated.

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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.