North Arkansas Regional Medical Center in Harrison has made cost reduction efforts — including layoffs and voluntary pay cuts for administrative staff — amid declining revenue.
Kim Rosson, a spokesperson for the health system, confirmed the actions to Becker's, which were reported Jan. 15 by Arkansas Business.
Ms. Rosson said the layoffs occurred in early December, affecting 26 employees, or roughly 3% of the hospital workforce.
NARMC has 700 employees total. More than 75% of the employees who were laid off were able to take other positions within the organization, Ms. Rosson said.
Hospital President and CEO Sammie Cribbs Roberson, MSN, APRN, told Arkansas Business that NARMC also merged other services and boosted its telemedicine availability to increase care access while the administrative team took a voluntary pay reduction.
The voluntary pay reduction was to support cost reduction efforts, months before any staff positions were affected, Ms. Rosson said. Individuals in various positions within the organization took the pay cuts. No further information was provided regarding the roles that took the cuts.
"The realignment and reductions are part of our sustainability plan to address rising cost[s]," Ms. Rosson said. And Ms. Roberson told Arkansas Business there is not enough reimbursement from insurers to cover the rising costs of labor, equipment and medicine.
NARMC also announced in December that it would close two clinics in Marshall and Lead Hill, Ark., along with one of its two urgent care centers. The hospital said it would also end services at its inpatient geriatric behavioral health unit.
Ms. Rosson said the next steps at NARMC "are realignment for growth and advancements throughout the facility to ensure access to medical care for our community."