GC Health Board ok's employee incentive programs to cut costs

MOSES LAKE — Facing significant state funding cuts, Grant County Board of Health members on Wednesday authorized a pair of “employee incentive programs” aimed at reducing expenses for the county health district.

One resolution establishes a “voluntary separation incentive program” that will provide severance pay and some medical insurance assistance to qualifying employees who agree to resign.

A separate resolution will allow remaining employees to receive a monthly stipend in addition to their regular salary if they have other medical insurance available and agree to opt out of insurance paid for by the health district, which currently has 35 full-time staff.

The goal, said officials, is to cut costs in preparation for the district’s 2027 budget while preserving essential public health services and minimizing involuntary workforce reductions.

“We have staff we don’t want to lose,” said administrator Theresa Adkinson.

“We’re in a budget situation due to state cuts,” said health board vice chair Matt Paluch, a community stakeholder from Moses Lake. “I’m glad there’s compensation to people if we have to go this route.”

Board chair and Quincy city councilman Tom Harris agreed, saying, “It’s an option we have.”

Other Grant County Board of Health members include county commissioners Kevin Burgess and Cindy Carter, Ephrata city councilman Phil Borck, healthcare facility representative Sheila Berschauer of Ephrata, Colville Tribal representative Dr. Alison Ball, and Jose Degante of Moses Lake, a public health consumer representative.

Collectively, they set policy and oversee budgetary considerations for the local health district, which is reacting to “significant” reductions in Foundational Public Health Service dollars, said communications coordinator Lexi Smith.

The Washington Department of Health defines FPHS as “core services which the governmental public health system is responsible for providing in a consistent and uniform way in every community in Washington.” But state lawmakers, citing deficit woes, trimmed $24 million from FPHS during the 2025-27 budget process, then another $29 million this year in Gov. Bob Ferguson’s approved supplemental budget.

“These cuts are not unique to GCHD and are affecting the Washington state public health system as a whole,” Smith said Thursday in an emailed response to GCJ.news.

In other cost-saving measures, Smith said Grant Health has opted not to fill several open positions, scaled back training and travel, “significantly” reduced its advertising budget, implemented “shared service opportunities” with other local health jurisdictions, and continues to explore “operational efficiencies.”

During this process, Smith said district personnel “have been extremely patient, open, and adaptive to the solutions we have implemented and proposed due to FPHS reductions.”

“Our team does great work, and we are deeply appreciative of their ongoing dedication to our community,” she said, emphasizing that “any (employment) separation due to a reduction in funding is in no way a reflection of employee performance.”

Both Smith and Adkinson said staff provided input in developing the two incentive programs approved by board of health members during their monthly meeting Wednesday night. 

The health district’s voluntary separation incentive program is open to full- and part-time permanent employees. An application period opens this Friday, Aug. 14 and closes Sunday, Sept. 27. It’s uncertain how many, if any, will apply. However, an application for voluntary separation does not mean automatic approval for an employee.

“Each application will be evaluated based on the health district’s organizational needs and ability to maintain essential services,” the health district said.

Using reserve funds, any approved severance pay and temporary assistance in keeping their workplace health plan — dubbed COBRA, based on a federal authorization act — will be based on an employee’s tenure. Those with less than two years’ service will get two weeks’ pay and one month’s COBRA assistance. A staffer with 20 or more years at the health district would receive both six months’ pay and COBRA assistance.

Additionally, the district will not contest any applications filed by departing workers for state unemployment benefits. There will also be a three-year restriction on re-employment unless waived by the administrator based on agency needs.

The VSIP was modeled after a similar program implemented by the City of Moses Lake, which health district attorney Katherine Kenison called “a sound policy choice for the board.”

“It’s good for (employee) morale; voluntary rather than a RIF (reduction in force) situation,” she said.

Health board members also approved a resolution authorizing a medical insurance “opt-out” incentive program to employees who have other qualifying coverage, perhaps through a family member or domestic partner.

GCHD staff are enrolled in the Washington State Healthcare Authority’s Public Employees Benefits Board Program that provides medical, vision, and dental insurance.

Depending on an employee’s enrollment tier, the district says its per-person medical insurance premium costs range from nearly $14,000 to over $29,000 annually. An employee who opts out of GCHD coverage would be paid $500 a month, which would provide a minimum net savings of almost $8,000 a year to the district.

The opt-out incentive will be effective Jan. 1, 2027 and available to all benefit-eligible employees with qualifying alternative medical coverage. Workers must agree to waive all health district-associated coverage for themselves and dependents. Employees would be allowed to re-enroll during an open enrollment period or a “qualifying life event.”

In Washington, there are 35 local health jurisdictions comprising county departments and multi-county districts which partner with the state Department of Health to manage community health, disease prevention and control, food establishment permitting and inspections, and environmental safety including on-site septic systems.