WhidbeyHealth Adopts $175 Million Budget, Plans Service Expansion
On November 21, 2025 the WhidbeyHealth hospital district board adopted a $175 million budget for 2026 that projects a modest surplus while funding new services and infrastructure upgrades. The plan promises continued local access to expanded outpatient care and targets improvements to long standing operational problems that have affected patients.
Elected members of the WhidbeyHealth board approved the budget on November 21, setting a financial plan that keeps the district in the black while investing in clinical services and facility upgrades. Chief Financial Officer Paul Rogers reported the hospital is forecasted to finish this year with a $1.169 million surplus and to end 2026 with a $1.027 million surplus, figures that hospital leaders say signal stability amid the pressures facing rural health systems.
The adopted budget assumes patient revenue will grow by 5 percent next year, an increase of about four million dollars. “We’re very busy,” Rogers said in an interview. “Patient volumes continue to increase and we’re adding new services.” This month the district brought Eye Care and Surgery online, and hospital leaders plan to add podiatry and cardiology services next year, with cardiology organized around outpatient centered care.
Hospital administration said it anticipates “a stable, ongoing outlook” regarding its bond rating, a matter closely watched after last year when Moody’s Ratings downgraded WhidbeyHealth into what The Bond Buyer described as “further into junk territory.” Early in 2025 the district secured access to ten million dollars in credit intended to help shore up its rating, though leaders do not plan to draw on those funds.
Rogers said the district expects to close the year with 19 days of cash on hand and projects 21 days of cash on hand at the end of 2026. Long term leadership goals include reaching at least 30 days of cash on hand to provide a stronger buffer against unexpected expenses and revenue fluctuations.
Capital spending in the budget is organized into a ranked list of priorities from No. 1 through No. 9. The top priority project carries a cost just over two million dollars and includes a planned one point one million dollar replacement of the hospital phone system, an upgrade intended to address recurring call problems that patients and staff have experienced despite prior investments. A new nurse call system is also a top priority because the existing system is at the end of its useful life. The second priority carries an eight hundred sixty thousand dollar price tag and includes refurbishment of an elevator. Remaining projects will be considered as needed.
A state audit covering 2023 provides context for the district’s revenue mix. Medicare accounted for 50 percent of patient service revenues, commercial insurance for 36 percent, Medicaid for 13 percent, and self pay for 1 percent. That payer distribution means federal Medicaid cuts would have a limited direct effect on district finances compared with systems that rely more heavily on Medicaid.
For Island County residents the budget means continuity of local care with expanded outpatient options that may reduce the need to travel off island for certain specialties. Planned investments in communications and nurse call systems aim to improve patient experience and operational reliability as service lines grow. Hospital leaders say the budget balances cautious fiscal management with targeted investments to keep community care accessible and sustainable.
