TONASKET — The North Valley Hospital Board of Commissioners met Thursday Oct. 30, to review September’s financial statements, hear audit updates and discuss the Preliminary 2026 Budget.
The meeting opened with a presentation by Shar Sheafor, CPA of DZA Accountants, who provided the district’s annual audit review. Commissioners also approved the 2023-2024 DZA Letter of Engagement to continue with the same firm for the next audit cycle.
Chief Financial Officer Melissa Thompson presented the September financial statements, reporting a combined district net loss of $265,557 against a budgeted income of $99,025. The hospital division reported a loss of $226,181, while the long-term care division showed a loss of $39,375.
Year to date, the district remains $101,009 in the red, compared to a budgeted gain of just over $900,000.
Thompson also presented the draft 2026 budget, which forecasts a modest positive income for hospital operations and a larger projected loss for Extended Care. She reviewed assumptions for patient volumes, staffing costs, and anticipated reimbursements, explaining that 2026 figures are being refined as more data becomes available.
McReynolds discussed the Preliminary 2026 Capital Budget, which outlined roughly $1.48 million in planned equipment replacements and infrastructure upgrades, according to figures presented by CFO Melissa Thomspon. The list includes medical equipment and IT servers to HVAC and maintenance projects. McReynolds noted that the Rural Health Transformation Project may also influence next year’s financial landscape, depending on final state-level decisions. The capital plan focuses on essential upgrades that support patient care and staff efficiency.
In his written report, McReynolds said the draft 2026 budget projects a modest positive income in hospitals and a larger negative income in Extended Care.
“We will continue to refine the budget and present a final version of the board’s approval at the Nov. 13 meeting,” said McReynolds. The final budget and tax levy certification will be presented for approval at the Nov. 13 meeting.
The board approved the Consent Agenda, which included the Sept. 25 meeting minutes and payment of vouchers totaling $3,348,838.74 for hospital accounts payable and $644,876.12 for long term care payables.
The board approved Resolution No. 770 and Resolution 771, surplusing outdated equipment, canceling old outstanding checks, reappointing medical staff, and continuing with the same audit firm for the next audit cycle.
McReynolds’ October administration report noted that hospital volumes were lower than target across most areas due to ongoing staffing shortages at Tonasket Family Medical Clinic. Charges have continued to trend slightly below the target necessary to generate a positive net income.
The Health Information Management (HIM) team achieved its most successful month yet on the Cerner system, reducing outstanding billing by nearly $1.3 million since September. The Revenue Cycle team continues to address claim denials, which totaled roughly $400,000 in unpaid revenue in October.
In nursing administration, new graduate nurses have completed orientation and a Preceptor Program is being developed to enhance staff retention and mentorship in 2026. The hospital also reported the launch of a new Certified Nursing Assistant (NAC) class, along with plans to expand to four sessions per year and become a testing facility.
The Grants Committee continues to pursue funding opportunities, with several grants awarded, including the Okanogan County Opioid Fund in the amount of $19,260 and the Distressed Hospital Fund, $59,000. Applications are pending for other state and local programs, the administration report noted.
The North Valley Community Health Foundation reported an overall balance of $84,914 as of Sept. 31, and approved funds to support patient activities in Extended Care. The foundation will also participate in the annual GiveNCW online donation drive, which runs from Thanksgiving through December 31.
The next meeting of the North Valley Hospital Board of Commissioners is scheduled for Nov. 13, at 7 p.m. in the Verbeck Building, 126 S. Whitcomb Ave. At his public hearing, the commissioners will review and adopt the final 2026 budget and tax levy certification.
