NEW ALBANY — Baptist Health Floyd has eliminated 36 part-time and full-time jobs, effective Sept. 21, the hospital confirmed Wednesday.
The hospital issued a statement regarding the restructuring of the hospital in response to a News and Tribune query. The restructuring was “necessary to meet financial challenges compounded by COVID-19,” the statement reads.
The number of employees affected was originally 47, but the hospital is working with a recruiter to find jobs within the Baptist Health network for those affected. The former employees who do not find other positions at Baptist Health will receive severance.
According to the statement, bedside nursing was not affected by the restructuring, and the positions eliminated are mostly administrative and non-clinical.
Baptist Health declined at this time to elaborate further on the restructuring.
Baptist Health Floyd was previously Floyd Memorial Hospital. The sale of the hospital to Baptist Health was approved in June 2016 by Floyd County government officials and the previous hospital board. The hospital opened as Baptist Health Floyd in October 2016.
In the spring, Baptist Health furloughed workers and reduced administrative pay due to COVID-19, according to WAVE 3 News.
COVID-19 has caused financial strain on hospitals throughout the state and the country. In April, Indiana hospitals had an average negative operating margin of -8.3%. Emergency care revenue fell by 40%, inpatient care revenue fell by 26% and outpatient surgery revenue fell by 52% between March and April, according to a study from the Indiana Hospital Association.
Between March and April, Indiana hospitals also faced increased costs for personal protective equipment, doubling of intensive care unit capacity and an increase in staffing costs, according to the study.