Local residents warn commissioners: hospital funding, Medicare compliance raise questions ahead of levy

Several residents urged the Clallam County Board of Commissioners on Tuesday to press the region’s hospital system for more transparency after recent leadership changes and reported regulatory problems at Olympic Medical Center.

“After that, Daryl Wolf … resigned. And now we find out that our OMC is delinquent in trying to resolve 60 critical issues that will result in Medicare pulling its funding,” said Denise Lapio, a Sequim resident, during the meeting’s public-comment period. “This is very upsetting because our community obviously needs a hospital.”

Why it matters: Commenters tied the concerns to a county ballot effort to raise local revenue for health services and operations. Denise Lapio noted the county previously endorsed a hospital ballot measure and said that endorsement should be weighed against what she described as the hospital’s subsequent operational troubles.

At the meeting, multiple speakers said they had been waiting for clearer financial and compliance reports from the hospital after the agency’s leadership departure. One commenter warned the county could be left “stuck with the bill” if the hospital lost Medicare funding. Another commenter tied repeated compliance findings over several months to alarms about future service loss and employment impacts at a major county employer.

The commissioners did not take a formal vote on the matter during the meeting. Commissioners and staff acknowledged the public concern; the record shows the county is preparing a ballot measure process for a levy-lid lift this election cycle, which several commenters referenced as related to hospital funding.

What was said in public comment: Denise Lapio read language from a hospital fundraising flyer and said the district’s previous proposition “will support the viability of 24 7 3 65 operations” if passed; she added that, despite that campaign language, she learned of leadership turnover and unresolved compliance items after the vote. Other speakers also asked the board to engage directly with hospital leaders and to provide timely public financial reports.

Background and next steps: Commenters asked the board to use its relationship with local officials and hospital leadership to monitor corrective actions, to seek more transparency about the hospital’s financial reporting and to weigh the county’s endorsement decisions against current operational risks. Commissioners did not announce an additional action or formal directive during the meeting; one commenter noted a county-backed levy lid lift would be on the November ballot.

Taper: The commissioners ended the public-comment period without taking a formal vote or making a new public commitment regarding the hospital beyond acknowledging the concerns and answering that staff would continue to monitor related budget and ballot work.