Providence Swedish South Puget Sound, the operator of Providence St. Peter Hospital in Olympia and Providence Centralia Hospital in Centralia, announced this week that it will reduce a majority of its outpatient physical, occupational and speech therapy services early next year.
The clinics or services will close Jan. 17, resulting in 55 layoffs.
In addition, the clinics will stop accepting new referrals on Nov. 1, Providence officials told The Olympian on Wednesday.
The clinics or services that are closing:
Providence Swedish South Puget Sound Chief Executive Darin Goss said Wednesday it was not an easy decision. The organization spent about a year evaluating it, then told staff about its decision last week. They will work with affected employees to help find them future employment and provide severance benefits, he said.
Patients are receiving information about other providers.
Goss said Providence could not compete in the marketplace for outpatient therapy because there are a number of independent providers and groups who offer these health care services.
"They don't have the overhead (costs) that we have so we are just unable to make that sustainable financially," he said.
The clinic on Sleater Kinney Road opened just two years ago, Goss added.
"We just don't see a path forward, given the financial challenges I'm speaking about, to continue to run that long term," Goss said in reference to the Sleater Kinney site. He said all of the clinics are in leased space.
Some services will not change.
Specialty outpatient rehabilitation services will continue at Providence Centralia Hospital. Providence also said it will maintain its outpatient neurology and a portion of its lymphedema therapy programs in Thurston County.
"These programs are essential for supporting our oncology and neurology patients," Providence officials said in a news release.
And no changes will be made to the inpatient therapy services provided at both Centralia and St. Peter hospitals, according to Providence.
Goss said Providence will continue to invest in primary care, oncology, urology, gynecology and obstetric services as well as behavioral health needs.
"As we look at our financial situation, and where we need to make adjustments, we're focusing on those core services that we feel we're one of the few in the market to provide," he said.
One patient was stunned that the Sleater Kinney site is ending its services, according to an email sent to The Olympian this week.
"I went from pure shock to anger to tears," wrote Tracey Johnson. "How could this be happening? Every time we come into this place it is packed full of people in need: amputees, the elderly, disabled veterans, stroke victims, athletes with injuries, babies with disabilities, little kids that are disabled, too.
"The dial-a-ride vans are pulling up like clock work, dropping people off. Social workers are there meeting with foster families getting care for their foster kids. Caregivers are sitting in the waiting room with the blank stares of pure exhaustion but with thankfulness to have a break, even if it is a small one."
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