Pennsylvania hospital lays off 25% of staff after struggling to make payroll

Ellwood City (Pa.) Hospital is facing financial challenges and has laid off 25 percent of its employees, according to the Ellwood City Ledger.

The layoffs occurred after the hospital took in less revenue in July than its payroll.

Ellwood City Hospital CEO Beverly Annarumo told the Ellwood City Ledger the hospital laid off 53 of its 200 employees, but three were called back to work. An additional 20 full-time workers were converted to part-time status or had their hours reduced.

"It's an awful decision to have to make," Ms. Annarumo told the Ellwood City Ledger. "The reason these people were working here was they needed a paycheck to feed their families ... [but] it was that or we all are in trouble."

Fort Lauderdale, Fla.-based Americore Health, which owns and manages Ellwood City Hospital, is also facing financial issues. Nine complaints were filed against Americore earlier this year alleging the company defaulted on contracts totaling $7.1 million. In June, New York's Supreme Court ruled in favor of the creditors.

Ms. Annarumo told the Ellwood City Ledger Americore's financial issues have affected the hospital's operations. However, she said Ellwood City Hospital's financial problems are largely attributable to the facility not making enough money.

Ms. Annarumo and the hospital's advisory board expect the hospital's financial position to improve once its medical labs reopen. The hospital is also close to reopening its renovated psychiatric unit and is awaiting state approval to open a substance abuse treatment unit, according to the report.

More articles on healthcare finance:

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Tennessee health system lands in bankruptcy after acquiring 3 hospitals from CHS



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