Pratt (Kan.) Regional Medical Center’s president and CEO Tammy Smith has tendered her resignation with the hospital, which is expected to implement a “significant workforce reduction” amid broader financial stabilization efforts, according to a July 23 news release from Pratt County (Kan.) officials shared with Becker’s.
A spokesperson for the county could not disclose the number of layoffs expected, but the hospital’s board of directors is working with turnaround firm Beeler Consulting to finalize the details.
Ms. Smith served as CEO of Pratt Regional for four years and was with the hospital for more than 12 years. She will remain in her role for a period of up to two months to ensure a smooth leadership transition, the hospital said in a July 22 news release shared with Becker’s.
Beeler Consulting is working to assist the hospital’s board of directors to find a new CEO candidate to lead the next stabilization phase.
The hospital also acknowledged that the workforce reductions were “incredibly difficult decisions.” Affected employees will be notified prior to broader announcements and will receive information on applicable transitional resources and benefits.
“We recognize that these changes affect valued members of our PRMC family,” Pratt Regional Board Chairman Bill Keller said in the hospital’s news release. “Our employees have dedicated themselves to caring for this community, and we are grateful for their service. Every decision has been made with careful consideration and with one guiding purpose, to ensure Pratt Regional Medical Center remains strong enough to continue serving Pratt County and the surrounding region for years to come.”
The county approved funding for Pratt Regional to work with the turnaround firm, which began the first week of July. The two parties said they are focused on improving the hospital’s financial visibility, strengthening revenue cycle performance, supporting leadership, evaluating operations and developing a path towards break-even performance.
“The immediate priorities include improving collections and cash flow, strengthening financial processes, maintaining critical hospital operations, supporting physicians and employees, and establishing clear leadership accountability,” the release said. “The engagement is producing results, including consistent financial reporting, identification of cost savings opportunities, potential streamlining measures that will maximize efficiency, and leadership changes with the goal of modernizing the hospital’s practices and generating buy-in from all stakeholders.”
The release also encouraged community businesses to fill and expand existing employment opportunities for Pratt Regional staff affected. It further acknowledged that this was a “painful” step, but said the action was part of broader efforts to protect local healthcare, reduce ongoing losses and stabilize operations at the hospital.
The news comes after local attorney David Eron sent a letter in late January that alleged PRMC owed more than $1.58 million in unreplenished rent credits and threatened to terminate the hospital’s lease agreements. The hospital said it was not in default under the lease. In mid-February, the Pratt County Commission directed its counsel to withdraw the pending notice of default and intent to terminate the lease.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.