SULTAN — Sky Valley Family Medicine, whose pending closure earlier this year triggered a community drive to save it, will become an independent medical clinic on April 1.
Valley General Hospital in Monroe agreed to operate the clinic for a year, which ends April 1, as part of an emergency plan to keep the clinic open.
The announcement of the upcoming switch to an independent clinic was made Wednesday by Dr. Mark Raney at a meeting of the hospital board. The board asked for a business plan by year’s end on how the clinic would operate on its own.
The clinic’s four doctors initially planned to operate it as a nonprofit clinic once it was on its own. They ultimately decided run it as an independent clinic, one of a handful of independent family practice clinics in Snohomish County.
"It’s the best way to keep the doors of the clinic open," Raney said. Clinic doctors have been working with accountants on a business plan for months, he said, and discovered that it would be more costly for the clinic to be run as a nonprofit because of higher administrative costs.
"The option most close to an even bottom line is to go independent," he said. "It’s also the most financially risky" for the physicians.
In addition to Raney, the other clinic physicians are: Dr. Vicki Baker-Hall, Dr. Sherman Lee and Dr. Scott Weber.
The clinic has 15 other full- and part-time employees.
As the clinic prepares to become an independent clinic, it has looked at ways to cut costs.
Part of that was closing its X-ray unit because the equipment was old and reimbursement from health insurance for X-rays is low, Raney said. The two people who operated the equipment resigned, he said.
The clinic, previously owned by Medalia Medical Group, was scheduled to close March 31 as part of a cost-cutting plan. Most clinic personnel were to be moved to its existing Monroe clinic.
People from throughout the Skykomish Valley organized a community drive to keep it open. In February, more than 250 people demonstrated outside the clinic, urging that the clinic not be closed.
About a week later, Valley General agreed in principle to take over the clinic for a year to give it time to chart its future.
In March, Valley General agreed to pay Medalia $48,646 for the clinic’s medical equipment. It was one of the last details to be worked out in changeover of clinic ownership.
The hospital expects to write off $84,000 as an operating loss for keeping the clinic open. It also will essentially make a temporary loan to the clinic of $308,000 for start-up money.
Raney said he was thankful to both the community and Valley General Hospital for the support the clinic has received.
Part of the community support included a fund drive, which has raised $50,000. It has a goal of raising a total of $100,000 by April 1 to help sustain the clinic.
Raney said the clinic may use part of the money to upgrade its medical record-keeping system, which ultimately will cut costs.
Reporter Sharon Salyer:
425-339-3486 or
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