WhidbeyHealth saves $644,000 in HealthTech exit
Published 1:30 am Friday, August 7, 2026
WhidbeyHealth’s early exit from its management agreement with HealthTech did not require a buyout, with the hospital district paying only a prorated $41,242 for July services and avoiding about $644,000 in remaining contractual costs.
Under the terms of the settlement agreement, Hospital CEO Nathan Staggs and Chief Financial Officer Paul Rogers concluded their employment with HealthTech and are now employed by the hospital directly. Both the hospital and HealthTech agreed to a mutual release of claims.
The contract was originally supposed to end in March 2027.
When the board for the public hospital district voted last month to end the agreement, it authorized two commissioners to negotiate a settlement with HealthTech, leaving unanswered whether the hospital district would have to pay additional money to terminate the contract early.
The hospital reported that the transition is expected to be seamless, with no impact on patient care, services or day-to-day operations.
Marion Jouas, president of the WhidbeyHealth board, said the hospital is pleased that Staggs and Rogers will continue to lead. The original contract included a noncompete provision that HealthTech previously argued would have barred Staggs from working for WhidbeyHealth for one year after leaving the company. The settlement agreement allows Staggs to remain as CEO.
“Their leadership has been instrumental in moving the organization forward,” Jouas said in a press release, “and we’re excited to have that continuity as we begin this next chapter. This transition reflects the progress WhidbeyHealth has made, and we’re confident the organization is well-positioned to continue delivering outstanding care to our community.”
Staggs said the transition will allow WhidbeyHealth to build on its recent progress while remaining focused on patients and the community.
“Our focus hasn’t changed,” he said in a press release. “We’re here to provide exceptional care for our community and support the incredible team that makes that possible every day.”
The hospital board entered into a five-year contract with HealthTech in March 2022 after firing former CEO Ron Telles, but the relationship between the hospital and the management company deteriorated over time.
The hospital’s internal dispute became very public earlier this year when three of the five board members voted unexpectedly to fire Staggs and then reversed themselves after the medical staff protested the decision and a HealthTech administrator summoned two board members into the hallway as the meeting was ongoing. Afterward, two of the commissioners who cast the votes — James Golder and James Canty — resigned while the third, Dr. Mark Borden, blamed HealthTech officials for convincing him to fire Staggs.
Not long afterward, the medical staff formally issued a vote of no confidence in HealthTech while also affirming confidence in Staggs and Rogers.
