Klamath Health Partnership Executives call for immediate Board resignation
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The following is a press release from Klamath Health Partnership.
KHP Executives demand board resignation to keep serving underserved communities
KLAMATH FALLS, Ore. - Klamath Health Partnership, Inc., commonly known as Klamath Open Door, is on the brink of losing crucial federal funding due to non-compliance issues attributed to its Board of Directors' failure to maintain a properly constituted board. This Federally Qualified Health Center (FQHC) serves over 11,000 patients in Klamath County and neighboring areas through its operations in Klamath, Chiloquin, and school-based facilities.
However, the Health Resources and Services Administration (HRSA) has issued a critical 90-day ultimatum to comply with federal standards or face the suspension of $2.8 million in federal funding, potentially closing all KHP clinics. This non-compliance has already prevented KHP from applying for a $1.1 million grant intended for expanding its Behavioral Health Program.
On July 11, 2024, KHP’s entire Executive Staff delivered a stark letter to the Board of Directors demanding their immediate resignation, stating that failure to seat a new board and ensure federal compliance will lead to the resignation of Executive Staff and the potential loss of 160 jobs. The loss of federal funding and key staff could devastate the community, undoing years of progress in providing accessible healthcare.
In the letter, made public by the Executive Staff, the executive team articulated the gravity of the situation: "The failure to maintain an appropriately composed Board of Directors has directly threatened the sustainability of our operations and our ability to serve the community," wrote CEO Amanda Blodgett. “The executive staff has lost confidence in the current board’s ability to govern effectively. We urgently demand the appointment of a new slate of candidates, fully equipped and committed to governance that will ensure the sustainability of KHP. These new board members must be dedicated to serving our community's health needs and, upon their appointment, the current board should resign immediately.”
A letter from KHP’s executive team was also reportedly sent to Oregon Governor Tina Kotek, Oregon Senators Jeff Merkley and Ron Wyden, U.S. Representative Cliff Bentz, and several other state and local officials
Upon assuming the role of CEO Blodgett discovered that KHP was two years behind in filing its yearly Medicare Cost Reports as well as two years behind in fulfilling federally mandated financial audits. Blodgett has also disclosed to the Board of Directors that the financial reports previously presented did not adhere to Generally Accepted Accounting Principles (GAAP), a critical issue that was brought to their attention in October 2023. This discrepancy suggests that past business decisions were based on inaccurate information, raising serious concerns about the organization's financial governance. These alarming revelations, coupled with the change in executive leadership, led to multiple long-standing board members resigning their positions for various personal reasons, further destabilizing the governance structure of the organization.
Since February 2024, KHP has been out of compliance with federal requirements due to the board's refusal to appoint new members. Despite the urgent need for robust governance, the Klamath Health Partnership Board of Directors has repeatedly declined to fill vacant positions, even as multiple qualified candidates have been presented. This reluctance to appoint new members has significantly contributed to the escalating governance issues at KHP.
The loss of federal funding and key staff due to board inaction would be catastrophic, undoing years of progress in providing accessible healthcare. The situation demands urgent action from the KHP Board of Directors to avert a healthcare catastrophe in Klamath County.