‘The urgency is real’: Oregon hospital taps interim CEO, CFO to lead turnaround

Bay Area Hospital in Coos Bay, Ore., is undergoing major leadership and financial restructuring as it aims to recover from a $24 million loss in its most recent fiscal year, which ended June 30.

The Bay Area Hospital board of directors appointed Kelly Morgan as interim president and CEO, effective Aug. 4. Mr. Morgan brings more than 37 years of hospital leadership experience, having previously served as CEO of Mercy Medical Center in Roseburg, Ore., before retiring in 2023. He also held executive roles at Sierra View Local Healthcare District in Porterville, Calif., and Mercy Hospital and Health Services in Merced, Calif.

Joining Mr. Morgan is Interim CFO Doug Dickson, a financial executive with expertise in hospital turnarounds. The hospital reported a $2.6 million loss for the month of June alone, adding to the hospital’s year-to-date loss of $24 million.

“We cannot continue to lose $24 million dollars,” Mr. Morgan told CBS affiliate KCBY. “We’re in significant trouble here so that’s really going to be the emphasis over the next several months, to get into a positive trajectory and get the hospital back on a sound financial footing.”

Bay Area Hospital’s financial strain is compounded by a $45 million loan from the Bank of Montreal, which carries increasing interest rates due to its fiscal instability, according to the report. Improving cash flow and restructuring operations are now among the hospital’s top priorities.

The leadership changes come on the heels of Brentwood, Tenn.-based Quorum Health termination a nonbinding letter of intent with the hospital. The proposed partnership was abandoned Aug. 8, with both parties citing the need for Bay Area Hospital to focus on immediate operational challenges.

A newly appointed board of directors has also taken shape within the past 30 days, adding another layer of change amid the hospital’s transformation efforts.

Hospital leaders have launched a $30 million turnaround plan focused on evaluating service lines, reducing expenses and making difficult operational decisions. A finalized plan is expected within 30 days.

“At this time there is one clear and urgent goal: to save the hospital. Every viable option is being explored to stabilize operations and ensure long-term sustainability,” a spokesperson for the hospital told Becker’s. “The urgency is real.”

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