Dallas-based Steward Health Care filed a WARN notice Oct. 1 for 255 employees at its Phoenix-based St. Luke's Behavioral Health Center.
The notice, obtained by Becker's, shared that while the vast majority of employees affected by the layoffs would be terminated Oct.1, "a small number of employees will remain on staff to keep the facility secure and to perform essential administrative tasks."
Here are six things to know:
1. Steward furloughed more than 200 employees Aug. 26 after Arizona ordered the for-profit health system to suspend operations at the 127-bed facility Aug. 14 after temperatures inside it reached 99 degrees.
2. The hospital was placed in immediate jeopardy Aug. 9 for not ensuring its HVAC systems were working and was forced to evacuate all patients to ensure the hospital's temperature was within a normal range before allowing new and existing patients to return.
3. Furloughed employees were not paid, but the spokesperson told Becker's they had the ability to use paid leave or PTO and would receive full healthcare coverage through at least Sept. 30.
4. Steward has been working to offload its 31 hospitals since filing for Chapter 11 protection May 6. Steward has four hospitals in Arizona: Florence Hospital, Mesa-based Mountain Vista Medical Center, St. Luke's Behavioral Health, and Tempe St. Luke's Hospital.
5. U.S. Bankruptcy Court Judge Christopher Lopez approved the sale of Florence Hospital, Mountain Vista Medical Center and Tempe St. Luke's Hospital to Scottsdale, Ariz.-based HonorHealth during an Oct. 3 court hearing. Mr. Lopez named HonorHealth interim manager of the hospitals and multiple outpatient physician practices Sept. 11.
6. Arizona Attorney General Kris Mayes launched an investigation May 10 into Steward's bankruptcy.
Steward, the Arizona Department of Health Services and Ms. Mayes' office did not have a comment for Becker's regarding the WARN notice. Becker's has also reached out to Arizona Gov. Katie Hobbs' office and will update this story should more information become available.
Editor's note: This story was updated Oct. 4 at 8:58 a.m. CT.