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Coos County hospital gets new leadership amid potential private equity deal

Bay Area Hospital in Coos Bay, Oregon.
Justin Higginbottom
/
JPR
Bay Area Hospital in Coos Bay, Oregon.

A previous Bay Area Hospital board was working on an agreement that would have Tennessee-based Quorum Health run operations.

Bay Area Hospital CEO Brian Moore has resigned, citing a different strategic direction for the financially struggling Coos Bay medical center.

Moore has held the position since 2019 and oversaw management during the COVID-19 pandemic.

Last year, the hospital’s board signed a non-binding letter of intent to negotiate with private equity-owned Quorum Health. That deal would have the Tennessee-based company assume operations of the hospital.

Despite a promise by Quorum Health to maintain essential services for at least 10 years, the potential agreement worried residents, who feared a loss of local control over the hospital.

Quorum has closed struggling rural hospitals in the past, including the 2023 closure of Martin County, North Carolina’s only major health care provider.

Many saw a recent hospital district board election as a referendum on the potential deal with Quorum.

New board chair Simon Alonzo, Jr. said he ran on keeping local control of Bay Area Hospital, but he said it’s still too early for a decision on next steps with Quorum.

“Primarily, my goal is to make sure that we have a thriving hospital in our community,” Alonzo said. “That's why myself and the rest of the board are really taking the time to review all the information in front of us to make sure that we make the best decision that's right for the hospital for years to come — not just the immediate timeframe.”

He said the new board members have had access to non-public hospital documents for just over a week.

“We have a loan out, and our loan is our priority to take care of first and foremost,” Alonzo said.

Bay Area Hospital defaulted on a $47 million loan with The Bank of Montreal after missing a promised profit margin in March.

At a swearing-in of new board members earlier this month, Moore said he was concerned recent cuts to Medicaid from Congress would further strain the hospital, The World reported.

The hospital’s board will appoint an interim CEO before beginning the search for a permanent hire.

Justin Higginbottom is a regional reporter for Jefferson Public Radio. He's worked in print and radio journalism in Utah as well as abroad with stints in Southeast Asia and the Middle East. He spent a year reporting on the Myanmar civil war and has contributed to NPR, CNBC and Deutsche Welle (Germany’s public media organization).
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