Pennsylvania medical center closes

Ellwood City (Pa.) Medical Center has closed its doors a week after laying off nearly 100 workers and a day after its CEO resigned, according to the Pittsburgh Post Gazette.

A sign was posted on the hospital's main entrance late Tuesday, saying "all clinical services are suspended until further notice effective 12.10.19."

Beverley Annuarumo, who announced her resignation as CEO Dec. 9, confirmed the closure to the Gazette. Ms. Annuarumo will officially leave her role Jan.3. 

Ms. Annarumo said Grant White, the CEO of Florida-based Americore Health which owns the hospital, hopes to reopen the facility in January. 

"While it is disappointing that hospital ownership made this choice, the department is committed to ensuring that hospital facilities can provide safe care to patients," Rachel Levine, MD, the Pennsylvania secretary of health, told the Gazette. "We will be continuing to monitor the facility in the upcoming days and weeks. It is essential that people are aware that if they need medical treatment, they will need to go to another hospital in the area."

In late November, state health officials ordered the hospital to suspend inpatient and emergency services due to "severe violations of state health law." Ms. Annuarumo said the suspension was prompted by a broken CT scanner, among other issues.

Days after the service shutdown, the hospital laid off 92 of its 171 workers. The layoffs were attributed to a decline in patient hospitalizations, an issue with submitting timely payments and the service shutdown.

The hospital has experienced other financial issues as well. Employees at the medical center did not receive their paychecks on Dec. 6, the second payroll snag in a row, according to the Ellwood City Ledger. 

The city said the hospital owes it $250,000 for electric bills and $100,000 in property taxes.

More articles on healthcare finance: 

'Venmo it to me': The emerging generational payment gap
Beaumont Health gets $21M donation
8 recent hospital, health system credit rating actions

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

 

Featured Whitepapers

Featured Webinars

>