PORT ANGELES — Olympic Medical Center (OMC) has begun exploring a potential partnership to address rising costs, low Medicare reimbursements, and other challenges threatening its long-term sustainability as a publicly funded hospital district that serves a significant Medicare population.

The OMC board approved the initiative this week, calling it a necessary step forward. According to an OMC statement, the effort will focus on finding a partner that aligns with the hospital’s mission, values, and commitment to local care. Key goals include improving physician and staff recruitment, expanding services, ensuring financial stability, and maintaining community-driven decision-making. Investments in technology, facilities, and programs are also priorities.

OMC officials noted that the hospital has already implemented cost-saving measures, pursued new revenue streams, and advocated for increased federal support. However, they view a partnership as a critical move to address mounting financial and operational pressures.

OMC’s Bobby Stone told KONP, “Unlike nearby Jefferson Healthcare, who receives cost-based reimbursement as a designated 25-bed Critical Access Hospital, OMC is a larger rural Sole Community Hospital paid like larger urban systems. Large systems have a much larger commercially insured business that can help cover Medicare and Medicaid losses.”

Stone said operations at OMC will remain unchanged during the exploration process, which is expected to take several months.