West Monroe, La.-based Glenwood Regional Medical Center, part of Dallas-based Steward Health Care, has laid off 23 employees.
Some of the roles impacted included leadership, a spokesperson for the hospital said in a statement shared with Becker's.
"This action, while unfortunate for those impacted, is a necessary step to adjust to the business conditions that have changed," the statement said. "These are the only reductions planned at this time and all impacted employees have been invited to consider moving to other current open positions."
The layoffs will not impact patient care or operations, the statement said.
The layoffs come as Steward is working to auction off its 31 hospitals and a physician group, Stewardship Health, in two rounds. The health system filed for Chapter 11 bankruptcy May 6.
Glenwood Regional had its CMS status restored and was deemed in compliance with the Louisiana Department of Health on May 14 after a period of regulatory review. The hospital had previously been placed in immediate jeopardy status three times across 120 days due to financial issues, KNOE reported April 11.
"I think Steward, in itself, is a bankrupt entity with bankrupt executives, and they need to just go away," Louisiana Rep. Michael Echols, told Becker's.
Mr. Echols also encouraged Steward's landlord, Medical Properties Trust, to "do the right thing" and give or sell the hospital back to the community to return it to a functioning facility.
"We've been anticipating these moments for well over six months based on Steward's mismanagement of the facility," he said. "I've been working with our attorney general to ensure that we hold executives of Steward Health Care accountable."