Teton Valley Hospital Secures Emergency Funding, Weighs Options

DRIGGS — Teton Valley Hospital has secured enough philanthropic support to keep its doors open while leadership evaluates the hospital's long-term future, according to a public FAQ the hospital posted on March 6.

The statement comes roughly six weeks after the critical access hospital laid off 26 employees — about 10% of its workforce — and closed its infusion clinic, which had provided local chemotherapy and hydration treatments. Hospital leaders called the January 22 cuts a response to a "perfect storm" of financial pressures: a 4% Medicaid reimbursement cut in September, the loss of $75,000 in annual chronic care funding, a sharp drop in patient volume during a low-snow winter, and $2 million in COVID-era CARES Act funding still held up by the IRS.

The hospital says it has no plans for additional layoffs and has been able to bring back some of the employees whose positions were eliminated.

Looking ahead, the hospital identified three paths it's evaluating: remaining independent, becoming a taxing district, or aligning with another healthcare entity such as St. Luke's or Intermountain Health. Officials have also been working with state lawmakers, including Sen. Mark Harris, on potential support through the federal Rural Health Transformation Program, though that funding isn't expected to arrive before fall 2026 at the earliest.

The ownership question remains unresolved. The hospital operates on a county-owned campus under a 99-year lease signed in 2013 and has asked commissioners to transfer the property to Teton Valley Health Care, a nonprofit. The hospital has offered to pay $70,000 annually for 10 years in exchange for eventual ownership, but commissioners have said they need a property appraisal first.

As the valley's second-largest employer with roughly 275 staff, and with the nearest alternative hospital at least 45 minutes away in good weather, the financial health of TVHC is arguably the most important institutional story in Teton County.

What to watch: TVHC is presenting monthly updates at Seniors West of the Tetons, the last Wednesday of each month, at the Community Center in Driggs. Weekly updates are being posted to the hospital's social media and website.

Sources: tvhcare.org public FAQ, March 6, 2026; TVHC public statements; Teton County commission records.