A Steward Health Care-owned behavioral health hospital in Phoenix has furloughed employees following a state order to suspend operations.
The furloughs at St. Luke's Behavioral Health Center, a 127-bed facility, took effect Aug. 26 and affect more than 200 employees, Dallas-based Steward confirmed to Becker's.
"The temporary closure of St Luke's by the state as a result of equipment malfunctions and hospital license suspension, has led to the unfortunate but necessary decision to furlough all St. Luke's employees," Steward said in a statement.
Furloughed employees will not be paid, but employees can use paid leave or PTO, Steward added. Employees will also receive full healthcare coverage through at least Sept. 30.
"This is a difficult situation, but we believe it can be resolved quickly, and our employees can return to doing their important work serving patients at St Luke's which SHC is actively working to transition to new ownership," Steward's statement said. "We will provide further updates as appropriate."
The furloughs come after Arizona ordered Steward to suspend operations at the hospital Aug. 14 after temperatures inside St. Luke's Behavioral Health Center reached 99 degrees. The state placed the hospital in immediate jeopardy Aug. 9 for failing to ensure its HVAC systems were working appropriately. Patients were transferred to other facilities. Steward, which has expressed alarm at the state's decision, is scheduled to appear in court for a hearing Aug. 29.
Steward filed for bankruptcy in May and is working to sell its hospitals, including its four hospitals in Arizona. Click here for the latest on where Steward hospitals stand.