Protected: Funding a Healthy Future
A Multi-faceted Approach to Sustaining 5-star Healthcare
At Island Health, we take pride in being your dedicated healthcare partner, committed to providing essential services for our community. Recognized by the Centers for Medicare and Medicaid (CMS) as a 5-star hospital for three consecutive years for quality outcomes and patient experience, this highest designation reflects our ongoing commitment to excellence in patient care. We are the only hospital north of Seattle to receive this rating and one of only seven hospitals in Washington State. This highest designation puts us in the top eight percent (8%) of hospitals in the United States, and it is a testament to our ongoing commitment to excellent patient care—a commitment that is only made possible by your unwavering support.
As a Public Hospital District, our mission is to serve you—our valued residents of Fidalgo, Guemes, Cypress and Sinclair islands. Your support, including a small portion of property taxes that contributes to our operating budget, allows us to continue delivering top-notch healthcare.
Confronting Rising Healthcare Costs
In 2024, it costs over $330K per day to operate Island Health. That’s a 21% increase over our pre-pandemic expenses of 2020.
Low Payment Levels Threaten Access to Care
On any given day, more than 75% of the patients we serve are covered by government insurance plans—Medicare, Medicaid and Tricare—which means we often face financial constraints due to the fixed reimbursement rates from these payers. On average, Medicare only covers 82% of the cost of care, leaving Island Health to find supplemental funding to cover the remaining 18% of our costs to deliver 5-star care. Medicaid and Tricare typically reimburse at an even lower rate. Despite these challenges, our team is committed to serving our vibrant community, and we remain hopeful and proactive about the future of healthcare in our hospital district!
Skagit County Public Hospital District No. 2
Island Health is part of Skagit County Public Hospital District, No. 2, serving Cypress, Fidalgo, Guemes and Sinclair islands. Our convenient location also attracts patients and visitors from the San Juan Islands, Whidbey Island, La Conner and more, providing acute, primary and specialty care to our surrounding communities.
The Road to Sustainability
When faced with obstacles, our team is determined to find solutions. Here are some exciting steps we are taking to ensure that quality care remains close to home for years to come:
Advocacy at All Levels
We’re actively collaborating with the Washington State Hospital Association and other hospital leaders to advocate for necessary funding and support. With the backing of our State and Federal legislators, we’re moving forward with projects like our new helipad and a surgical robot, set to enhance our services in 2025.
Streamlining Operations
Our dedicated team is focused on finding efficiencies and reducing expenses. By renegotiating with commercial insurance providers and improving our processes, we are ensuring that every dollar we earn goes directly into delivering the 5-star healthcare you deserve.
Expanding Access to Care
We are responding to your needs and enhancing our services, including additional pulmonology, urology, general surgery and primary care providers. Our strategic planning process includes several service lines that we will be exploring over the coming months. These additional services not only improve health outcomes for our patients but also supports the sustainability of our organization.
Education and Engagement
We believe in the power of collaboration and transparency. We’re committed to keeping you informed about our challenges and plans, so you can be an active participant in shaping the future of healthcare in our hospital district.