Indiana hospital to close, lay off 437 employees

Fayette Regional Health System, a single-hospital system based in Connersville, Ind., is in the process of selling its assets and plans to cease operations by July 31, according to a Worker Adjustment and Retraining Notification Act notice filed with the state.

The hospital has been operating in Chapter 11 bankruptcy since October 2018, and is trying to sell its assets. Regardless of whether a sale is finalized, Fayette Regional will cease operations at its facilities no later than July 31 and lay off 437 employees. "These employment terminations are expected to be permanent," states the WARN notice filed by the hospital.

Although Fayette Regional hasn't set a specific date to wind down operations, workers affected by the shutdown are expected to remain employed by the hospital until at least July 3, according to the WARN notice.

Some Fayette Regional employees will likely secure jobs with Richmond, Ind.-based Reid Health, which entered into an agreement this week to acquire "a substantial portion" of Fayette Regional's assets. The deal, which requires regulatory and bankruptcy court approval, is expected to close in mid-July, according to a press release.

Reid Health currently provides a variety of healthcare services in Connersville, including primary, specialty and urgent care, and leaders are evaluating which services would be offered if the asset purchase agreement is approved and finalized.

"Reid Health will be working to determine the path forward for the services that will be provided in Connersville," the health system said in an emailed statement. "These services must be sustainable and available for many years into the future."

Although few details are currently available about the proposed transaction and which services will be offered if the deal closes, Reid Health said it is committed to maintaining local access to high-quality healthcare services and will share information as it becomes available.

"Reid Health officials expect to be at Fayette Regional in coming weeks to discuss details of the transition with leadership and others at Fayette Regional," Reid Health said in the press release.

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Editor's note: This article was updated May 17 at 2:15 p.m. CST to include the statement from Reid Health. 

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