Skagit Regional Health receives state approval to lease, operate Cascade Valley Hospital and Clinics

Skagit Regional Health has received a Certificate of Need from the state Department of Health granting approval to enter into a long-term lease of Cascade Valley Hospital and Clinics.

State approval gives the green light for the two organizations to complete work on integration details and begin the 30-year lease on June 1, 2016.

“We are very pleased with the rapid and positive response to our Certificate of Need application so we can move forward with integration between Skagit Regional Health and Cascade Valley Hospital and Clinics,” said Gregg Davidson, FACHE, President and Chief Executive Officer of Skagit Regional Health. “We look forward to our two organizations coming together toward our mutual goals of retaining and advancing health care services for the people of north Snohomish County.”

In the Certificate of Need review documents, the state notes “…after reviewing the extensive process undertaken by both hospital districts to determine the best alternative for CVH, the department concurs that the long-term lease of CVH is the best alternative for the community.”

The evaluation also notes that Cascade Valley Hospital and Clinics is an integral component of health care services in north Snohomish County and surrounding communities and the plan promotes continuity of services for the people of the region.

“I am delighted to have received the formal response to our CON application from the state Department of Health. I agree with the department’s assessment that affiliation is a good way to assure long-term availability of health care in Arlington,” said Clark Jones, Chief Executive Officer at Cascade Valley Hospital and Clinics. “I look forward to completing the due diligence process leading to a smooth transfer of operations on June 1.”

Skagit Regional Health’s total operating revenue for 2015 was more than $300 million and the organization closed the year with 2,013 employees. Cascade Valley Hospital and Clinics’ revenue for 2015 was nearly $50 million with a total of 457 employees.

In November, the Boards of Commissioners of the two public hospital districts each voted to approve a definitive agreement for the integration.

The definitive agreement states Skagit Regional Health (Skagit County Public Hospital District No. 1) will lease, operate and manage Cascade Valley Hospital and Clinics, including the 48-bed hospital in Arlington, five clinics and a free-standing surgery center.

Snohomish County Public Hospital District No. 3 will remain the owner of leased assets.

Skagit Regional Health has a commitment to grow and offer additional services, and to install a new electronic health record at Cascade Valley Hospital and Clinics.