Pennsylvania hospital CEO resigns amid financial woes, medical service ban

The CEO of Ellwood City (Pa.) Medical Center resigned days after the hospital missed payroll and was ordered to shut down inpatient and emergency services for “serious violations” of state law, according to Go Erie.com.

Advertisement

Beverly Annarumo, who has been the CEO since 2017, announced plans to step down Dec. 9. She will officially leave the role Jan. 3.

The state health department ordered the shutdown and suspension of admissions to the facility in late November after a CT scan broke down.

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 recent service shutdown.

The hospital has experienced other financial issues as well. Employees at Ellwood City Medical Center did not receive their paychecks on Dec. 6. It was 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 leadership and management:

Politico: CMS administrator requested $47K for stolen luxury goods
Senate considers Cadillac tax repeal
UMass Memorial CEO: ‘Medicare for All’ is the ‘best plan’ so far

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.

Advertisement

Next Up in Leadership & Management

Advertisement

Comments are closed.