Amidst rising inflation costs, lower reimbursement rates, and shifting state and federal policy, Washington Regional Medical System announced a restructuring plan Thursday (May 28) that will result in 86 job losses. The Fayetteville-based healthcare system stressed that job cuts would have more impact on administrative functions than direct patient care.
“We are all aware of the challenges facing the hospital industry, particularly in Arkansas,” said Dr. Lucas Campbell, Washington Regional president and CEO. “The factors (inflation and reimbursement) are well documented. While we continue to advocate for competitive reimbursement, we are all closely evaluating any and all opportunities to improve our financial performance. Like others, we are implementing difficult, but necessary, workflow and workforce changes without impacting bedside care. Not only are we reducing labor expense, we are better aligning our administrative labor with more streamlined operations.”
Announced as a “strategic organizational restructuring,” the health system said it would streamline operations and redesign workflows “to reduce administrative burdens to better support bedside and clinical teams.” Changes will include consolidation of select management and support functions, resulting in the elimination of positions as the organization works to strengthen its long-term financial stability…