Employees were not paid as scheduled on March 7, and hospital owner John Johnson, MD, told staff by email that the administration was “working hard to enable a disbursement to take place on or before” March 11, according to The Intelligencer.
On March 11, Dr. Johnson provided another email update to employees.
“As indicated last week, all efforts remain concentrated in utilizing any and all incoming cash flow toward payroll distribution and benefits,” according to The Intelligencer, which obtained the communication.
“As owner, Chief Executive Officer/Chief Operating Officer of the organization, it is my sole fiduciary responsibility to advise you of my intentions and provide a progress status update. As of today, I have been unsuccessful in meeting the 3-11 time frame with our lending sources. I will continue to provide future updates.”
Bernie Albertini stepped down as administrator and COO of East Ohio Regional Hospital in September, and Julie Ross, who previously served as chief nursing officer and vice president of revenue cycle, succeeded Mr. Albertini as COO. The Intelligencer noted that Dr. Johnson signed the March 11 email as CEO and COO, while he did not sign his previous message.
On March 10, Ms. Ross sent an email to staff, signed with the COO title, indicating no payroll update, according to Fox and NBC affiliate WTOV.
Employees are protesting after other payroll delays at the hospital, one in August and another in December. Hospital officials attributed the August delay to an issue with the bank that resulted in a delay in processing its wire transfer to its payroll company, and the December delay to an error by the hospital’s payroll company.
The hospital also announced in February that it would be shuttering its long-term care and skilled nursing facility.
Additionally, the hospital has been working to resolve backdated taxes. Hospital leadership and Belmont County recently agreed on a monthly plan for EORH to pay off $1.2 million in delinquent property taxes, county Treasurer Kathy Kelich said March 11, according to The Intelligencer.
The city of Martins Ferry has made the first payment toward the 36-month contract using funds resulting from a previous agreement between the hospital and city, Ms. Kelich said, according to the newspaper.
Becker’s has reached out to the hospital and will update this story if more information is provided.