Arkansas Valley Regional Medical Center in La Junta, Colo., is laying off 5% of its workforce as part of a broader strategic effort to stabilize the hospital’s finances and ensure long-term sustainability.
A spokesperson for the hospital did not respond to Becker’s request for specific workforce numbers but confirmed that about 5% of employees will be affected by the reduction. Hospital leaders emphasized that there will be no impact on patient care.
The 25-bed critical access hospital announced the layoffs after an extensive review of its financial position, citing rising operational costs, inflationary pressures and declining reimbursement rates — challenges that are increasingly threatening rural hospitals across the country.
“We explored every available option before determining that a reduction in workforce was necessary,” Dale Leighty, board chair, said in a June 26 news release. “Our goal is to preserve access to care for our community and protect the long-term health of the hospital.”
The layoffs come just weeks after a significant leadership change. On May 21, the hospital announced the departure of CEO Andy Flemer. Heidi Gearhart has since stepped in as interim CEO while the board conducts a national search for a permanent replacement.
The hospital, which has served the Arkansas Valley region for more than 120 years, is a critical lifeline for southeastern Colorado. The nearest hospital is over 60 miles away, underscoring its essential role in the community.
Hospital leaders have raised concerns about the potential effect of the Republican lawmaker’s “One Big Beautiful Bill,” which they argue would further strain rural hospitals by cutting Medicaid funding and forcing care reductions that would disproportionately affect vulnerable populations, including children and seniors.
In Arkansas Valley Regional’s district, 31% of residents rely on Medicaid, including more than 228,000 individuals, 14,700 people with disabilities and thousands of children. Leaders warn that Medicaid cuts would result in longer travel times for essential services, reduced emergency response capabilities, and the potential closure of critical services.
Despite these challenges, the hospital said it remains committed to strengthening rural healthcare access. Key initiatives include expanding telehealth services, modernizing financial systems, investing in clinical capabilities, and collaborating with partners such as the Eastern Plains Healthcare Consortium and the Colorado Hospital Association.
“We remain deeply grateful for the dedication and compassion of our employees — both those who are departing and those who continue with us,” Mr. Leighty said. “This community deserves dependable, quality care, and that remains at the heart of everything we do.”
