Ouachita County Medical Center in Camden, Ark., has furloughed close to 50 employees and implemented salary reductions for remaining staff as it works to meet budget constraints under Chapter 11 bankruptcy, CEO Glenda Harper told Becker’s.
The furloughs, which took effect July 24 and run through Sept. 25, span nurses, pharmacy, environmental services, dietary, maintenance and business office staff, Ms. Harper said. Employees remaining on the job are taking pay cuts of 5% for those earning between $25 and $30 per hour, 10% for those earning above $30 per hour, and 20% for those earning more than $100,000 annually. The leadership group agreed to deeper cuts, and Ms. Harper will not take a paycheck during the eight-week period. Together, the measures are expected to save roughly $150,000 per pay period, or more than $1 million over the furlough window.
“I was afraid if I didn’t make a move to save significant money immediately, the bankruptcy court would convert our case to a chapter 7, which is their prerogative,” Ms. Harper said.
Aug. 10 will be the last day the hospital performs surgeries, which will also eliminate the surgery clinic and staff in the operating room, recovery room and holding. The hospital received its rural emergency hospital designation July 1.
Ms. Harper said the hospital expects new revenue from a revenue cycle restructuring, new coding and billing partners, and the launch of pain management and insulin infusion services before furloughed employees return. Three entities are exploring a possible purchase or acquisition of the hospital.
Becker’s reported in January that the hospital planned to file for Chapter 11 bankruptcy, citing roughly $8 million in debt. The hospital closed its labor and delivery unit that same month. Ouachita County Medical Center has about 205 employees and operates with 49 beds.
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