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Methodist Hospital is Restructuring with the Job Loss of 61 Employees

Methodist Hospital is Restructuring with the Job Loss of 61 Employees

Bill Stephens

April 11th, 2017


Methodist Hospital to focus on core services

Methodist Hospital announced today that it is initiating an organizational restructuring to focus more effectively on its core services. Employees were told in department meetings the restructuring will result in a reduction of approximately 61 management and staff positions. The Hospital said it also will defer the expansion of the Emergency Room at Methodist Hospital Union County. Construction was scheduled to begin this month.

“We have not been immune to the economic challenges that are transforming our industry and more specifically community-based hospitals in rural Kentucky,” said Benny Nolen, Interim President and CEO at Methodist Hospital. “Our Hospital admissions and outpatient volumes are not meeting expectations, while uncompensated care expenses are up significantly. This imbalance mirrors what healthcare organizations across our state are experiencing.”

He added, “The cost containment initiatives we implemented in 2016 were not enough to avoid this restructuring effort. We have looked at our entire delivery system to identify what will help us excel as a high quality, community-based hospital. We believe our healing ministry uniquely defines us and it will be our touchstone going forward.”

Hospitals across the Commonwealth are challenged on many financial fronts. Rising bad debt, increased charity care and underpayments from Medicare and Medicaid are some of those issues. According to statistics from the Kentucky Hospital Association, these challenges have significantly reduced operating margins to short-term acute care hospitals like Methodist Hospital.

Eligible employees may apply for open positions, according to Nolen, and will have access to outplacement assistance. He added that meetings with impacted employees will take place over the next two days.

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