SILVERDALE, Wash. – Hundreds of children who rely on specialized therapy services will soon be without care as St. Michael Medical Center prepares to shut down its pediatric outpatient rehabilitation clinic in Silverdale this week.
The clinic, which provides occupational, speech, and physical therapy, is set to close Friday because of financial challenges – a move that is sending families scrambling to find alternatives in an already strained health care system.
Parents say they were given about six weeks’ notice of the closure, and many providers in the region already have monthslong waitlists, leaving families with a gap in care and few realistic options.
“That was devastating for me and for a lot of families because our area doesn’t have a lot of options, and our kids are not going to have places to go at this point,” said Noelle Pacl, whose son has received care at the clinic for more than a decade.
Pacl’s son, Logan, has a degenerative disease and has depended on consistent therapy for 13 years. Like many others, the family was forced to quickly find a new provider.
“The clinics here are full. They have waitlists. They don’t take Medicaid,” Pacl said. “The only places close that do take Medicaid are in Tacoma or Seattle. A lot of parents have travel barriers, and those places have waitlists as well.”
For some families, the disruption could mean a significant setback, reversing months of progress.
Katie Osantowski said she waited months to get her 8-year-old daughter into occupational and speech therapy at St. Michael last fall. Now, just months later, she is back to square one – facing waitlists of six months or longer.
“Pausing her care means she’s not going to be progressing,” Osantowski said. “Any progress we’ve made, we fear she will lose or regress.”
Hospital officials said the decision was not made lightly.
In a statement, St. Michael Medical Center cited “significant financial pressures, including rising labor and supply costs, increasing insurance claim denials, and chronic underpayment from government programs like Medicare and Medicaid.”
The hospital said it recognizes the importance of these services and the difficulty families face in transitioning care. Officials said the clinic serves about 200 patients, and some will complete their course of therapy before it closes Friday.
“We’ve had so many people reach out and try to find solutions, and they don’t seem to want to help us,” Osantowski said. “It feels like they don’t care.”
Families worry the closure could also signal broader cuts to health care services in the region.
“Right now this is affecting our kids,” Pacl said. “Tomorrow, it’s going to affect many more members of our community.”
In recent weeks, families have organized on social media and held rallies and vigils outside the hospital to protest the closure. They’ve also offered to help fundraise and have contacted elected officials in hopes of finding a way to keep the clinic open.
So far, they say they have been told there are no viable options to keep the clinic open.
A full statement from St. Michael Medical Center President Chad Melton follows:
“St. Michael Medical Center made the difficult decision to close our Pediatric Outpatient Rehabilitation Clinic, effective April 24, 2026. Considering our mission, the needs of our patients and communities, and the economic headwinds we face in health care today, we determined that closing this clinic is necessary.
Virginia Mason Franciscan Health, similar to other hospital systems across the state, is facing significant financial pressures, including rising labor and supply costs, increasing claim denials, and chronic underpayment from government programs like Medicare and Medicaid. These challenges have only intensified for hospital systems like ours with H.R.1, and Washington state taxes and reduced reimbursements. These compounding fiscal pressures are impacting vital, safety-net programs and services across our communities.
We recognize the importance of these services to local children and families and understand the many challenges involved with a transfer of care.
Since the clinic closure was announced, we have been working to support families and provide referral resources. We recently met with families representative of the broader group to listen closely to their experiences and concerns. We are grateful for their honesty and willingness to engage.Our commitment to Kitsap County and meeting local health care needs well into the future remains our top priority.”
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