WILLIAMSON, W.Va. — Williamson Memorial Hospital announced late Monday, Jan. 13, that 20 of its full-time employees would be furloughed.
The move, announced via news release, comes as part of the “hospital’s ongoing efforts in re-organizing the 100-year old hospital through Chapter 11 bankruptcy.”
WMH filed for Chapter 11 bankruptcy in U.S. Supreme Court on Oct. 21, 2019, and then announced that it would lay off 35 employees and make a reduction to its services 10 days later on Oct. 31.
The news release announcing the recent furloughs was signed by Gene Preston, interim CEO and managing member of vertical healthcare.
“As part of ongoing efforts in re-organizing Williamson Memorial through Chapter 11 bankruptcy, the Leadership Team has examined our business to better position the hospital to maintain core services for the community,” Preston wrote. “After a comprehensive evaluation process, the hospital has developed a new, streamlined structure that is more appropriate considering current volumes.
“Unfortunately, this process resulted in several difficult, but necessary organizational changes, including the furlough of 20 of our employees.”
According to the release, officials expect the furlough will not affect patient care.
“It is the hospital’s hope that this furlough will be temporary as we stabilize our revenue cycle process and allow for growth in the future,” the release reads.
According to Preston, in June of 2019, the hospital installed a new clinical and financial system, the conversion to which was deemed “a failure” as it caused the days in accounts receivable to exceed 200.
“This resulted in a complete depletion of the hospitals working capital,” according to the release. “Although the operational adjustments that have been made have the organization operating at a modest operating margin, the hospital remains with limited liquid resources until we overcome the issues surrounding the installation of the clinical and financial systems.”