WA Hospital Association predicts more cuts as local medical center shutters 5 clinics
May 14, 2025, 4:05 PM | Updated: Jun 25, 2025, 1:24 pm
A photo of the Valley Medical Center in Renton. (Photo courtesy of the Harborview Medical Center)
(Photo courtesy of the Harborview Medical Center)
A major health care provider is making cuts, and it likely won’t be the last.
Valley Medical Center is closing five clinics, including an urgent care center in Renton. It’s consolidating two other clinics and closing two hospital units by June 27th. The provider estimates that 50% of its 4000 employees will be affected by the moves, although it is not clear how many will ultimately lose their jobs.
Valley Medical says, year to date, it is operating at a $25 million loss, due to uncertainties over state and federal funding and insurance company reimbursements. And those in the medical profession fear it will only get worse.
Right now, Congress is considering up to $880 billion in cuts to Medicaid, which is a program that helps lower-income Americans and those with no insurance through their employer. The Trump Administration argues it is eliminating fraud and waste and that no one who qualifies for Medicaid will get pushed off the program.
Congresswoman Kim Schrier pushes back on closures
Washington Congresswoman Kim Schrier, a pediatrician, says, “The reality is you just don’t get that kind of savings without kicking a lot of people off.”
And she says when that happens, everyone will pay for it.
“Those patients are still going to get sick. They’re actually going to get sicker, they’re not going to be able to go to their primary care physician, and instead they’re going to go to the emergency room. And then the wait in the emergency room gets longer. And because they can’t pay for that care, the hospital is going to have to eat it,” Schrier said.
Hospitals will have to respond to the extra financial burden by making their own cuts to service.
Washington State Hospital Association CEO Cassie Sauer says Valley Medical will not be the last health care provider that will be forced to make cuts.
“They’re not going to be the only ones. There are lots of hospitals talking about the cuts they’re going to have to make and a loss of services that communities will experience,” she told KIRO Newsradio.
Valley Medical Center closes key clinics
The most impactful changes include closures of key inpatient hospital units. The Northwest Pavilion inpatient unit and the Inpatient Pediatrics department will both close on June 27. The closure follows a sharp decline in patient volume, with an average of just four inpatients per day. While Valley will continue to provide outpatient pediatric services, inpatient care will now be directed to regional children’s hospitals.
“These are extremely difficult decisions that affect not only our workforce but the broader community we serve,” Valley said in a statement to staff. “They are not taken lightly—but they are necessary for the future stability of our organization.”
Outpatient clinics set to close
Several Valley outpatient clinics are also set to close permanently by the end of June. Kent Primary Care, Occupational Health Services, and the Pediatric Neurology and Sleep Medicine clinic will close, along with the Maternal Fetal Medicine Clinic, which is ending its satellite service contract. Renton Landing Urgent Care closed earlier on May 12.
Several clinics merging
RELATED STORIES
The Medication Management clinic in Covington will partially merge with Valley’s Renton campus by June 20, while Valley Women’s Healthcare in Covington will combine services with the Renton and Auburn locations by June 27.
Hospital leadership said these closures were chosen with careful consideration of community resources to minimize disruption to patient care.
“We gave significant thought to each area of closure and consolidation, ensuring that there are alternative providers in place to continue care,” the hospital noted.
Hospital administrators stressed the current healthcare landscape is putting pressure on systems nationwide and Valley Medical Center is not alone in facing these tough decisions.
“We are focusing our resources on where we can make the most impact,” the hospital said. “Our mission remains, and with a more focused structure, we are committed to continuing forward with resilience and a deep responsibility to those who depend on us.”
Notifications to affected staff began this week. Employees impacted by the closures are encouraged to apply for available positions within the organization.
Read more of Heather Bosch’s stories here.
