Supervisors hold Valley Health’s $285M bond hostage over lack of response, loss of services

Page Memorial Hospital

‘This could cost Valley Health a lot of money’

LURAY, July 1 — During Monday night’s work session, what appeared to be a routine resolution to endorse revenue bond refinancing for Valley Health was transformed into an ultimatum by the Page County Board of Supervisors.

“We have asked for meetings in the past to discuss how they have cut services for this community,” District 1 supervisor Keith Guzy said. “And nothing’s happened. We have gotten no response.”

After a short discussion that seemed to surprise staff and counsel on both sides, the board voted, 6-0, to take no action on (or “table”) the resolution of support for bond re-financing by Valley Health until the board’s July 15 meeting. Several supervisors emphasized they wanted staff to set up a meeting with Valley Health officials before July 15 to discuss various local concerns related to Page Memorial Hospital before endorsing their bond financing.

“Those are totally unrelated issues…this could be problematic if [Valley Health] does’t stay on the bond schedule…this could cost Valley Health a lot of money,” bond counsel Mike Graff told Page supervisors on Monday night.

“I wish the administrator had let me know there was going to be an issue…and we could have worked to resolve it before tonight,” Graff said. “I don’t know what you expect to solve in a week… I don’t know what you expect to resolve at this meeting, but these are completely unrelated issues.”

County Administrator Amity Moler said she did not anticipate the resistance to the resolution, but she also acknowledged that multiple attempts to meet with Valley Health officials has landed on deaf ears, with no response from the regional healthcare provider for several months.

Supervisors stated they simply want a seat at the table with Valley Health to see what can be done for shrinking services at PMH and better overall service for local residents.

Back in April, Page Memorial celebrated a century since a group of 75 local women gathered at the theater and held the first public meeting that would lead to the formation of the Luray hospital. Despite a long list of services that have been discontinued locally or consolidated at Winchester Medical Center, PMH listed the following achievements at the Chamber’s April 16 “Business After Hours” event:

  • 1939 — First surgical unit opens.
  • 1958 — Grows to 45-bed hospital on Memorial Drive in Luray.
  • 1986 — Ultrasound equipment was purchased for radiology services.
  • 1990s — Pulmonary and cardiopulmonary rehabilitation was added.
  • 1995 — Page Rural Health Clinic opened on the PMH campus.
  • 2005 — Receives federal designation as a Critical Access Hospital.
  • 2008 — Affiliates with Valley Health in Winchester.
  • 2011 — New medical building adjacent to hospital opens.
  • 2012 — Page-Shenandoah Health Center opens in Shenandoah.
  • 2014 — $35-million, 25-bed facility opens to replace former PMH building.
  • 2017 — Outpatient Rehabilitation facility opens in portion of former hospital.

However, despite the struggles of small hospitals — including their growing charity care, growing overall costs, and reduced negotiated costs with Medicare/Medicaid — local citizens still note the need to travel elsewhere for any specialty treatments and sometimes for basic healthcare needs. No longer are babies birthed at PMH (or Warren Memorial), creating what experts are now calling “birthing deserts,” according to a recent NPR article focusing on the problem in Page and across the region.

As Valley Health was absorbing losses and dealing with critical needs in the wake of the COVID-19 pandemic, they closed Valley Health Wellness & Fitness in Luray. Public backlash was swift, but Valley Health stated that: “Unfortunately, memberships at the center have never returned to pre-pandemic levels, and now the center has been closed due to the fire in the adjacent space. As a result, the difficult decision has been made to close the center permanently.”

While the fire sparked the move to close the fitness center, overall finances — and finances specific to that service — were leading the healthcare provider in that direction prior to the blaze.

“The Luray fitness center has operated at a loss since its opening and has been supported by Valley Health and Page Memorial Hospital as a service to the community,” said Jacob Meza, Valley Health VP of Operations for Ambulatory, Post-Acute, and Community Services. “Current post-COVID financial challenges demand that we focus our resources on ensuring that essential health care services are available locally.”

Financial woes have continued to direct and guide decisions regarding services, but local leaders want at least a seat at the table to discuss what could be done to improve the situation in Page County.

“We kinda always feel like the red-headed step-child,” District 5 supervisor Jeff Vaughan told Graff. “That money is going to Winchester anyway.”

According to comments at the meeting, the revenue bond financing “in an aggregate principal amount not exceeding $285 [million],” is earmarked for an expansion project at Winchester Medical Center.

Valley Health has sought resolutions of support on the bond re-financing from other neighboring jurisdictions and still had “two other meetings to attend” as of Monday night. Part of the funds being refinanced are related to the construction of the “new” Page Memorial Hospital a decade ago.

“Bonds were issued for, among other purposes, the purpose of providing funds, together with other available funds, to pay, or reimburse Page for paying, the cost of the construction and equipping of a hospital facility (“Page Hospital”) consisting of approximately 68,000 square feet of space on two floors above ground and one floor below ground and housing approximately 25 acute care beds (collectively, the “2013A Page Project),” the resolution reads.

After “nine months or more” of no response by Valley Health to requests for a meeting with local leaders, Page supervisors are now holding Winchester’s $285 million hostage — or as a “bargaining chip”, one supervisor stated — in order to “get their attention” and get their meeting to air grievances.

For more information on Valley Health,

visit https://www.valleyhealthlink.com/

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1 Comment

  1. A “grievance” I have is that Valley Health is enabling the mental illness of Munchausen syndrome by providing “gender affirming care” to minors. What kind of doctors go for that?

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