Hello to all of our patients and communities we serve,
The purpose of this letter is to set the record straight on incorrect information that has gone out recently in news articles and social media about Good Shepherd Health Care System’s financial status. Some community members, including Good Shepherd staff, have understandably raised concerns after reading these articles and/or social media posts stating that Good Shepherd is at risk of closing if the “Big Beautiful Bill” is signed into law. After receiving a call from a concerned patient recently, I knew we had to communicate the facts letting everyone know how Good Shepherd is doing both financially and in other key areas that drive a hospital’s success. I called this patient back and assured her that we are financially stable and will be here supporting the health care needs of this region for decades to come. She was very relieved and said that she and her husband would likely have to move if Good Shepherd closed. Her comment really hit home and was a good reminder to me of how important a community hospital is to the communities it serves.
Good Shepherd is unequivocally NOT at risk of closing, nor are we in any financial distress.
How did this misinformation start? A study done at University of North Carolina Chapel Hill’s Sheps Center identified Good Shepherd, three other Oregon Hospitals, as well as hundreds of other hospitals throughout the country as being in financial distress and at risk of closure as a result of Medicaid reform which is part of the federal bill (Big Beautiful Bill) that passed on July 4th. The bottom line is the study is flawed as it only looked at two criteria, Medicaid payor mix percentage and having three consecutive years of negative total margin. In this study, Good Shepherd is listed and identified as an at-risk hospital due to having a Medicaid payor mix of 32.7%. Our payor mix for Medicaid year-to-date is 28.8%. This means that 28.8% of our patient population has Medicaid as their health insurance. Although a higher percentage than some hospitals, it is also considerably lower than many and we do not feel that this percentage is high. The second criteria used in the study is a hospital having three consecutive years of negative total margin. A “negative total margin” is not producing enough revenue to cover all expenses. Good Shepherd’s total margin has been favorable for several years, so negative total margin does not apply to our organization whatsoever. This study should have looked at several other financial criteria to accurately determine the financial health of any hospital.
Here are several examples that show that Good Shepherd is financially healthy, which allows us to further meet our mission of providing exceptional care close to home:
- Hired over 80 physicians and other providers of various specialties over the last 23 months
- We are continuing to recruit in the following specialties – ENT, General Surgery, Internal Medicine, OB/GYN, Oncology, Pediatrics, Primary Care, Dermatology, Ophthalmology, and Rheumatology
- From January 2023 to July 15, 2025, Good Shepherd increased from 1,048 team members to 1,540 team members. An increase of 492 staff supporting the new and expanded services highlighted below
- New service lines at Good Shepherd – Cardiology, Child/Adult Psychiatry, Critical Care Medicine, Gastroenterology, Interventional Radiology, Nephrology, Occupational Health, Pulmonology, Physical Therapy, and Sleep Medicine
- Expanded service lines with additional Physicians, other providers, and/or equipment – Da Vinci Robotic Surgical System, Day Surgery, Diagnostic Imagining, Lab, 8-Bed Observation Unit, Orthopedics, Oncology, Pediatrics, Primary Care, Sleep Medicine, Urgent Care, Urologic Aquablation Robotic System, Urologic Axonic System, and the Women’s Center
- Increased total patients cared for by over 30% from fiscal year 2024 to fiscal year 2025, which just ended in June
- Revamped Good Shepherd Urgent Care, now open 7AM-7PM daily with easy accessibility to include online appointment booking
- Partnership with the City of Hermiston on the Good Shepherd Pickleball Complex to promote healthy lifestyles
- Partnership with the Hermiston Police Department – We now have 24/7 Good Shepherd police on our main campus increasing the safety for patients and staff
- Purchased 61 acres of land on Main Street in Boardman, OR for a future Good Shepherd – Boardman campus
In closing, I want to reiterate that Good Shepherd Health Care System, which includes the Good Shepherd Medical Center (Hospital), Medical Group (Outpatient Clinics), Pharmacy, Home Health, Vange John Memorial Hospice, and Home Medical Equipment, is financially stable and doing well in many areas as highlighted above.
Our Board of Trustees, volunteers and 1,540 staff are proud to be your health care system, working hard every day to provide compassionate and exceptional care close to home.
If you have questions, please reach out initially to Caitlin Cozad, Marketing & Communications Director at ccozad@gshealth.org or 541-667-3460.
Thanks,
Art Mathisen
CEO Good Shepherd Health Care System
Whistling past the grave yard?
A trillion dollar cut to health care spending, largely targeted at the progressive programs – vaccination, screening, education, aid to the under privileged, …- that dramatically *reduce* overall costs, is on the way. “So far, so good” is your response?
Where is the money going to come from to continue services at the current level, much less fund expansion by half?
Well appreciated to let us know thank you for everything,
We are delighted to have the new pulmonary specialist. Dr Hahn. He is brilliant. Altho I must say my recent personal experiance with the urology department wasnt to my liking. My appt was at 8:30 Sat Julu 19th. No problem there but I waited in the room for 35 minutes. Not especially happy with the Dr. either. Less than professional. Seemed like he might have been an intern. Hoping for more Doctors like Dr Hahn as we are 85 and have several medical issues.