North Carolina health system cuts 10% of workforce, closes clinics

Citing a financial hit from the COVID-19 pandemic, Lumberton, N.C.-based Southeastern Health will permanently close several clinics, cut 10 percent of its workforce and reduce executive pay.

"The unplanned expenses associated with securing additional supplies and protective equipment, coupled with the significant drop in volumes as a result of suspending nonessential procedures, have left our organization in a serious financial situation," Southeastern Health President and CEO Joann Anderson said.

The health system said it plans to close clinics in Maxton and White Lake, N.C. In addition, it will shutter its neurosurgery clinic, end outpatient behavioral health services and consolidate outpatient physical therapy services.

Southeast Health will cut 236 jobs, or about 10 percent of its workforce. The system said 40 percent of its workforce cuts will be met by not filling vacant positions, attrition, retirement or reassigning staff, but 147 employees will lose their jobs. 

"These were not easy decisions to make, and we do not take the impact it has on our colleagues lightly," Ms. Anderson said. 

Southeast Health also will cut compensation for executives, including Ms. Anderson, who will see her pay slashed by 46 percent. 

More articles on healthcare finance: 
U of Vermont Medical Center furloughs about 450 employees
Montefiore loses $96.7M in Q1: 5 things to know
UPMC's net loss hits $653M in Q1, driven by pandemic

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