The hospital closed June 30, resulting in 315 workers losing their jobs. The hospital announced the closure about a week after issuing a Worker Adjustment and Retraining Notification Act notice, which gave hospital workers 60 days notice before the mass layoff.
CEO Steve Harris previously told the Arizona Daily Star that workers would receive extended pay and health insurance through Aug. 20. Employees told the publication they were also promised compensation for up to 80 hours of unused vacation pay.
However, employees were told in a July termination letter that they “will no longer be entitled to any further compensation, monies or other benefits from SCVRH, including coverage under any benefits plans or programs sponsored by SCVRH, except as described hereinbelow,” according to the Arizona Daily Star.
The publication reported that employees were also told via that letter that their final paycheck would include full pay, but that several employees said only partial pay was included and that there were still insurance withdrawals when their insurance wasn’t effective anymore. They also contend the paycheck excluded pay for unused vacation time.
Santa Cruz Valley Regional initially issued the layoff notice after Tucson, Ariz.-based TMC Health canceled its bid to buy the hospital.
Lateral Investment’s Richard de Silva, and Jeremiah Foster of Resolute Commercial Services — who was tapped to serve as the chief restructuring officer — did not respond to interview requests from the Arizona Daily Star.
Read the full Arizona Daily Star report here.
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