Bastyr University tells Kenmore council it averted sale after $14 million losses; plans "centers of excellence" and partial property sales to stabilize finances

Bastyr University representatives on Monday told the Kenmore City Council the private natural‑medicine school had faced severe financial stress but is taking steps to stabilize operations and keep its campus in the community.

Dr. Joseph Pizzorno and Chief Administrative Officer Randy Frisch said the university lost about $14 million over the prior three years and was effectively out of cash when they returned to lead the institution. Frisch said a local philanthropist provided a loan that allowed the university to take out its mortgage with US Bank and avoid selling the campus to a developer. "We lost about $14,000,000 in the prior 3 years," Frisch said. "We were effectively out of cash ... we were able to bring in about $3,000,000 to help us address immediate needs."

The presenters told the council they had reduced operating expenses, examined programs for sustainability and persuaded the Northwest Commission on Colleges and Universities to remove a "show cause" financial sanction after demonstrating improved stability. Frisch said the school expects to report a positive net revenue after June 30, 2026, while acknowledging cash flow will remain a concern and that the university may need to sell a portion of its property to remain viable.

Why it matters: Bastyr's campus includes historic buildings, a chapel and woodland that councilors said they would like to preserve. Council members raised questions about how program changes, property sales and potential partners would affect public access, athletic fields and forested areas.

What they proposed: Pizzorno and Frisch described a shift toward generating revenue beyond tuition. Frisch outlined two strategies: "centers of excellence" that combine research, clinical services and training in focused areas such as diabetes and integrated cancer care, and selectively partnering with organizations that would occupy portions of the campus as complementary services (for example, a state proposal to house women survivors in one dorm). "We're looking at how can we utilize our resources, particularly our reputation and our campus, to bring in revenues that will advance our mission," Pizzorno said.

Council response and follow‑up: Deputy Mayor Sassen, who said she previously served as a licensed midwife and taught in related programs, asked the presenters to revise their slide set to better acknowledge midwifery and other programs that merged with Bastyr in prior years. Councilors suggested community uses for the chapel and other assets and asked about conservation options for the campus forest; presenters said they are discussing partnerships with the city and state and will continue negotiations with potential philanthropic and programmatic partners.

Context and numbers: Frisch said the university considered offers that valued parts of the property at up to $65 million but rejected proposals that would strip the campus of its primary buildings and gardens. He also said the school had previously been required by the accreditor to post a letter of credit but had that requirement waived after demonstrating sustainability. The presenters said relocating the Wallingford clinic to the Kenmore campus is expected to save about $1 million next year.

Next steps: Bastyr representatives said they will continue discussions with city staff about campus partnerships, share additional program and space‑use proposals with councilors and pursue philanthropic support and selective property dispositions to shore up finances.