Evergreen Health CEO outlines quality rankings, financial pressures and plans to expand outpatient behavioral health
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Summary
Evergreen Health’s CEO presented hospital quality awards, recent financial trends, staffing changes, and plans to embed behavioral health in primary‑care clinics, and the presentation briefly touched on a levy lid lift before the city attorney advised caution about discussing pending ballot measures.
Evergreen Health CEO Dr. Ettore Palazzo gave the Kenmore City Council an annual state‑of‑healthcare update, highlighting quality recognitions, staffing and traveler reductions, operating losses in recent years, and plans to expand outpatient behavioral‑health services in primary‑care clinics.
Palazzo said Evergreen Health has maintained high quality scores across national metrics and has reduced reliance on agency "traveler" staff significantly since the pandemic. "Our traveler percentage has been cut down by 75%," he told the council, and he said rolling 12‑month turnover has fallen to 12.3%.
Financial context and levy discussion: Palazzo described multi‑year operating losses that peaked during the pandemic and said the hospital is generating cash again. He warned that proposed Medicaid and Medicare cuts at the federal level could heighten financial strains for hospitals. He also discussed the hospital district's historical levy rate and said the current levy is 14¢ per $1,000 in assessed value; when the presentation referenced a possible levy lid lift on the ballot the city attorney interrupted and asked the presenter to avoid discussing pending ballot measures without proper notice. Palazzo agreed to skip any ask for endorsement and continued the presentation without seeking council action.
Behavioral health and service expansion: Palazzo described outpatient behavioral‑health pilots, saying the system has embedded behavioral health at one primary‑care clinic with plans to extend to Kenmore and others. "We're extending that, to Kenmore and others, and we would like to do that in every one of our clinics," he said, but added that doing so for all clinics faces financial constraints and will depend on philanthropy and operational changes.
Other topics and council questions: Council members asked about the cost of traveler staff (Marshall asked) and whether the hospital is reviewing medical‑debt cancellation programs (Council member Colver asked). Palazzo said the hospital is reviewing charity‑care and revenue‑cycle options; a new CFO is leading further analysis and the board of commissioners would be involved in any hospital policy change on debt cancellation.
No city action was requested or taken. The presentation concluded with council expressions of support and thanks to Evergreen Health for local services.
