St. Francis CEO David Koontz told the Ledger-Enquirer the layoffs are part of the financial turnaround plan LifePoint has been helping the hospital implement.
“We have been changing the supply chain, the processes, renewing contracts, and we have been improving our revenue cycle,” he said.
In addition to the layoffs, Mr. Koontz told the Ledger-Enquirer an undetermined number of hospital employees will have their hours reduced.
LifePoint acquired St. Francis in December 2015. As part of the transaction, LifePoint agreed to take on St. Francis’ financial obligations, including paying off a loan from the U.S. Department of Housing and Urban Development. A 2015 audit report by HUD’s Office of Inspector General found St. Francis owed $21.4 million for failure to comply with federal regulations and a regulatory agreement connected to the financing of an expansion project at the hospital.
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