Benny Nolen, interim president and CEO of Methodist Hospital, told WFIE the hospital is restructuring to focus more on its core services. “We have looked at our entire delivery system to identify what will help us excel as a high-quality, community-based hospital,” he said.
Methodist Hospital hopes the changes will improve its financial performance. Mr. Nolen told WFIE there are several factors contributing to the hospital’s financial troubles. “Our hospital admissions and outpatient volumes are not meeting expectations, while uncompensated care expenses are up significantly,” he said. “This imbalance mirrors what healthcare organizations across our state are experiencing.”
The hospital implemented cost containment initiatives last year, but the savings were not enough to avoid the job cuts, which will affect management and staff positions.
As part of the restructuring process, Methodist Hospital will also postpone an emergency room expansion project that was slated to begin this month at its facility in Morganfield, Ky.
More articles on healthcare layoffs:
Shuttered NC hospital settles case over improper layoff notification
Laid-off workers accuse Hennepin County Medical Center of discrimination
Banner physicians affected in latest round of system layoffs
At Becker's 4th Annual CEO + CFO Roundtable, taking place November 2–5 in Chicago, more than 1,500 hospital and health system executives tackle decisions that determine whether organizations thrive or merely survive: protecting margins under cost pressure, choosing where to grow, renegotiating payer relationships, stabilizing the workforce and proving real ROI on technology. This is where leaders work through them together, face-to-face. Apply for complimentary registration now.
