La Pine Community Health Center lays off 11% of staff while awaiting further word on federal funding freeze

(Update: CEO provides more details; Wyden reaction)

La PINE, Ore. (KTVZ) -- La Pine Community Health Center has laid off 11% of its staff of 90, pending more details about a freeze on federal funding, but said its school-based health center closed temporarily due to a power outage, not due to the federal funding situation.

The organization said it is likely "a temporary change" and it will keep the public updated as it works to preserve services.

Due to more community questions, CEO Erin Trapp provided this statement on Thursday to KTVZ News:

“The reduction in the workforce at La Pine Community Health Center (LCHC) on February 5, 2025, resulted in the layoff of 11% of staff, a few of which volunteered to be included. Losing valuable team members was not a decision we wanted to make, but we are pleased that direct patient care was not impacted through these layoffs.

"The impact of the federal funding issue reaches much further than La Pine. There are Community Health Centers (CHCs) located in every state, US territory and the District of Columbia, who are faced with navigating this issue. CHCs have been providing care to underserved communities since the 1960's and currently provide care to approximately 32.5 million people through bipartisan federal support. It has been proven that health centers improve the health and well-being of their communities. They are innovators, healers and problem solvers. Health centers are partners in rebuilding the economy.

"It's not just CHCs that are impacted by the rapidly changing federal initiatives.  All non-profits are trying to navigate their way through this issue.  There is an old saying, ‘Your children should never get wet because of your storms.’  Our patients do not deserve to feel the effects of our storm.  These proactive steps were put into place to protect our patients and our community and ensure they continue to have access to care.”

"In addition, a few of you have asked about the construction of our Wellness Center. Construction is still ongoing and the plan to expand our services has not been affected.

"I have attached a one-pager from the National Association of Community Health Centers (NACHC) that outlines the impact of community health centers across the nation, for your reference."

After hearing about the La Pine situation, Sen. Ron Wyden's office shared his statement with KTVZ News:

“Whipping up chaos, fear and confusion with lawless stunts like freezing funds already approved by Congress -- and in many cases obligated to recipients such as health clinics -- doesn’t help anybody in Central Oregon or anywhere else in our state and country,” Wyden said. “These performative and illegal schemes certainly are delaying contracts and could break contracts altogether, ending up costing taxpayers more while hurting Oregonians seeking health care. I’ll keep pressing Donald Trump and his army of flunkies with every tool available to restore these federal resources just as Congress directed.”

Here's the initial La Pine Community Health Center news release sent Wednesday:

LA PINE COMMUNITY HEALTH CENTER MAKES PROACTIVE OPERATIONAL CHANGES
TO PROTECT CRITICAL HEALTHCARE SERVICES

La Pine, OR - February 5, 2025 -La Pine Community Health Center (LCHC) made difficult changes to operations today, by reducing its workforce, in effort to protect its ability to provide care to the residents of La Pine and surrounding communities as it awaits further direction from Health Resources and Services Administration (HRSA).

While many Community Health Centers (CHCs) across the nation are closing their doors in response to issues accessing federal funds, LCHC is working proactively to preserve services to avoid interruption to care for its patients. Erin Trapp, Chief Executive Officer, stated, “We will do everything we can to keep our patients from experiencing the effects of the Federal funding freeze, as it pertains to the delivery of healthcare. We believe this will be a temporary change and plan to restore our workforce soon.”

There have been rumors that the La Pine School-Based Health Center (SBHC), sponsored by La Pine Community Health Center, was shut down abruptly today because of the aforementioned change to operations, which is false. The SBHC was closed today due to a power outage and will continue to operate on its regular hours of operation once power is restored.

LCHC’s leadership team continues to monitor the ever-changing federal funding landscape and will provide updates when necessary.

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About La Pine Community Health Center
La Pine Community Health Center (LCHC) is a nonprofit, Federally Qualified Health Center (FQHC), Patient-Centered Primary Care Home that provides 360-degree care to the communities of South Deschutes, North Klamath and West Lake Counties. LCHC provides care to the commercially insured, uninsured and underinsured.  Some of the services that are provided by the health center are primary medical care for all ages, point of care nursing, behavioral health, health education and outreach resources such as transportation to appointments, assistance with prescriptions and Oregon Health Plan enrollment.  Also offered at LCHC is access to specialty care, such as orthopedics, podiatry and dermatology.

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Here's the document Trapp referred to: