Alder House, an assisted living facility located in South Bend, is facing closure on May 8 due to continued operating losses. The facility, which opened in 1995, has struggled financially over the years, with declining Medicaid payment rates and a decrease in resident admissions cited as contributing factors to its closure. Despite efforts to sustain operations, the facility has been operating at a loss, prompting the decision to surrender its assisted living license.
With a capacity of 37 rooms, Alder House has been occupied by fewer than 20 residents in recent times, further impacting its financial stability. The facility has been managed by Willapa Harbor Hospital for the past 15 years, with the hospital providing financial support to cover expenses that revenues have not been able to meet. In total, Willapa Harbor Hospital has advanced nearly $2 million to Alder House over the years, with a significant outstanding debt that the hospital has agreed to forgive upon closure.
The closure of Alder House will only proceed once alternative living arrangements have been secured for its current residents, ensuring their well-being and care. The decision to close the facility has been made in consideration of the financial sustainability of both Alder House and Willapa Harbor Hospital, with the latter facing its own financial challenges exacerbated by the COVID-19 pandemic. While the closure brings an end to a chapter for Alder House, it also signifies a new beginning for Willapa Harbor Hospital to focus on serving the healthcare needs of Pacific County without the burden of financially supporting the assisted living facility.