Jennie Stuart Health is laying off 248 employees, officials at the local medical center announced Wednesday morning.
The layoffs are related to reduced operations for elective and non-emergency healthcare services during the coronavirus pandemic, according to Jennie Stuart Health, which operates Jennie Stuart Medical Center.
Employees affected by the reduction in employment were notified Tuesday and early Wednesday.
Reducing payroll expenses is needed to “secure the key clinical personnel on the front lines of this battle,” according to a new release.
“This is an incredibly difficult time for our health system, and this is not a decision we made lightly. I regret the immediate personal impact on these employees and their families,” Jennie Stuart CEO Eric Lee said in the news release. “However, we must reflect in our staffing how the current reality has changed the resources needed to care for the dramatic shift in our volumes of non-COVID-19 patients. We believe this is a necessary step to stem the revenue losses we will continue to experience until this national health crisis is contained.”
In another development, Quorum Health Corp., the Brentwood, Tennessee-based company, which owns a division that provides management services for Jennie Stuart Medical Center, announced Tuesday it is filing for Chapter 11 bankruptcy.
Jennie Stuart’s contract is with Quorum Health Resources, which is a subsidiary of Quorum Health Corp.
Quorum Health Resources employs Lee as CEO of Jennie Stuart Health and Greg Moore, Jennie Stuart’s chief financial officer.
The voluntary petition to reorganize under the federal bankruptcy code includes a Restructuring Support Agreement, known as the RSA, that will allow Quorum to reduce its debt by approximately $500 million, according to a company news release.
The company said the bankruptcy will not affect the hospitals it operates.
“The operations of Quorum Health and its hospitals are unaffected and all facilities are open and available to provide patient care,” the news release states. “The Company’s subsidiary, Quorum Health Resources, is also continuing to provide the same high quality services to its hospital, health system and healthcare provider clients.”
Bob Fish, Quorum Health Corp.’s president and CEO, said, “We believe the financial restructuring plan announced today will strengthen our business and enable our community hospitals to continue the important work they are doing in addressing the COVID-19 crisis, as well as serve their patients and communities.”
(Jennifer P. Brown is the editor and founder of Hoptown Chronicle. Reach her at editor@hoptownchronicle.org.)
Jennifer P. Brown is co-founder, publisher and editor of Hoptown Chronicle. You can reach her at editor@hoptownchronicle.org. Brown was a reporter and editor at the Kentucky New Era, where she worked for 30 years. She is a co-chair of the national advisory board to the Institute for Rural Journalism and Community Issues, governing board past president for the Kentucky Historical Society, and co-founder of the Kentucky Open Government Coalition. She serves on the Hopkinsville History Foundation's board.
