Internal Email Reveals Cost Dispute Behind Cherokee Nation’s Decision to Drop IPAs
CLAREMORE, Okla. (Cherokee 411) — By Cara Cowan Watts
Internal Email Confirms No IPAs for Claremore Staff as Cherokee Nation Cites Cost Concerns
CLAREMORE, Okla. — An another internal email obtained by Cherokee 411 confirms that the Cherokee Nation will not offer Intergovernmental Personnel Act (IPA) agreements to current federal staff at Claremore Indian Hospital, citing a reported 700% cost increase as a result of IHS contract terms.
The email, sent by Stephen Jones to Cherokee Nation Health Services employees, attempts to address what he calls “rumors and misinformation” surrounding the Nation’s planned October 1, 2025, assumption of hospital operations. It also outlines the Nation’s reasoning for eliminating inpatient and labor and delivery services at the facility — a decision that affects more than 400 employees.
“Our intent was to offer Claremore’s staff an IPA agreement (as we did at Hastings),” Jones wrote. “However, IHS presented us with a ‘take it or leave it’ no-negotiation contract that increased Cherokee Nation’s cost per IPA employee by over 700% — an impossible financial impact to an already under-funded facility.”
IPA agreements are commonly used in federal-to-tribal transitions to allow Indian Health Service (IHS) employees to retain their pay, benefits, and federal status while continuing to serve under tribal administration. Without these agreements, Claremore staff will be required to reapply for jobs under Cherokee Nation Health Services — with no guarantee of retaining their positions or benefits.
In the email, Jones reaffirmed that patient care will continue in the emergency department and outpatient clinics, and stated that the Nation will make “competitive offers” to some existing staff based on experience. However, he also acknowledged that some roles will be eliminated.
Jones cited low inpatient census numbers, limited surgical operations, and the aging infrastructure of the facility as reasons for the shift in focus. According to the email:
The average inpatient census is fewer than four patients per day.
Labor and delivery sees less than one birth daily.
The inpatient wing requires over $58 million in repairs.
Only 14% of hospital revenue comes from inpatient services.
He argued that concentrating resources on emergency and outpatient care “makes the most sense from every perspective.”
While the email emphasized a commitment to transparency and respect for the existing workforce, the decision has sparked widespread concern among staff and tribal citizens — many of whom feel blindsided by the lack of IPA agreements and the scale of the transition.
Cherokee 411 will continue to monitor developments as hospital employees seek clarity, and as Cherokee Nation leadership addresses mounting public concern.
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📧 Internal Email from Kristin (HR): Internal email from Kristin Young
