Lane Regional Medical Center in Zachary, La., has eliminated 14 positions across the organization, including staff, leadership and physician roles, as part of an effort to strengthen its long-term financial stability.
The hospital also discontinued one specialty service that no longer had sufficient patient volume to remain sustainable, according to an Aug. 7 news release from Lane Regional.
Lane Regional will end its allergy, asthma and immunology services effective Sept. 4, and the layoffs took effect Aug. 6, marketing director Jon Hirsch confirmed to Becker’s. Two of the 14 affected employees are physicians, two are directors and 10 are in staff positions, and the hospital does not expect further layoffs.
“These were extraordinarily difficult decisions, and among the most challenging we have faced as an organization,” Frank Corcoran, CEO of Lane Regional, said in the release. “We recognize the impact these actions have on dedicated employees who have faithfully served our patients and community.”
Lane Regional cited rising operating costs, workforce challenges and reimbursement rates that have not kept pace with the cost of delivering care. Hospital leadership said the moves followed a thorough evaluation and were taken only after other options were exhausted, and that the hospital remains fully operational.
The reductions follow the hospital board of commissioners’ July approval to explore a strategic affiliation with another healthcare organization, an evaluation Lane Regional said is ongoing with no decisions finalized.
“We are taking proactive steps today to help position Lane for a stronger future,” Mr. Corcoran said.
Lane Regional is a 131-bed hospital with more than 850 employees and is the largest employer in Zachary, according to its website.
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