Low reimbursement rates led to layoffs, Arkansas Heart Hospital CEO says

Bruce Murphy, MD, CEO of Little Rock-based Arkansas Heart Hospital, said low reimbursement rates have led to fewer than 50 employees being laid off since the beginning of the year, Arkansas Business reported Feb. 19. 

Dr. Murphy said the employees laid off were in lower-paying positions and the cuts have not affected patient outcomes. Arkansas Heart Hospital employs about 1,300 people. 

Dr. Murphy is urging the passage of legislation that would require health insurance companies to pay Arkansas hospitals at least the average base rate paid in the six bordering states, according to the report.

"Arkansas has had the lowest rates in the nation for a long, long time," he said. "And if we want good healthcare, we're going to need to support our hospitals so that we can bring in the best and newest technology and continue to be able to hire the best doctors to come to Arkansas to work."

In addition to layoffs, Arkansas Heart Hospital recently closed a clinic and plans to consolidate seven more by July, according to the report. Together, those moves will reduce its roster of community clinics from 23 to 15. Dr. Murphy said the satellite clinics usually meet only once or twice per month and they will be consolidated into larger nearby clinics. 

He also said that some service lines or departments may have to close and are being evaluated, according to the report.  

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars