Magnolia (Ark.) Regional Medical Center has laid off staff as part of a broader restructuring effort, citing rising costs and reimbursement pressures.
The reduction in force occurred March 3 and affected approximately 20 employees, primarily in clinical roles such as licensed practical nurses, Karen Weido, senior director of marketing, medical staff services and plant operations, told Becker’s. Executives were not affected.
In a statement shared with Becker’s, the hospital said the decision was made to help strengthen its financial stability.
“Magnolia Regional Medical Center has made the difficult decision to implement staffing adjustments as part of a broader restructuring effort to strengthen our financial stability and ensure we can continue providing essential healthcare services to our community,” the hospital said. “Like many rural hospitals, we are navigating rising costs and ongoing reimbursement challenges.”
The layoffs come after Magnolia Regional, a 49-bed hospital, signed a letter of intent in November with Little Rock, Ark.-based Baptist Health to explore a potential partnership. Ms. Weido said the organizations remain in the due diligence phase of that process.
“We are grateful for the contributions of the employees affected and remain fully committed to serving Magnolia and the surrounding region,” the hospital said.
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