CEO of West Tennessee Healthcare Says He is Forced to Make Cuts
JACKSON, Tenn – West Tennessee Healthcare officials said they are forced to make cuts because they have lost money for the past eight months. Hospital officials said they are not considering layoffs at this time, but say they cannot be ruled out in the future. According to a statement sent by West Tennessee Healthcare president and CEO Bobby Arnold, it is all a result of a lack of medicaid coverage expansion and declining reimbursement. “We are currently working on the budget for the next fiscal year. Unfortunately, we do not foresee an expansion of TennCare, the state Medicaid program, in the near future,” said Arnold. So far, employees have had their paid time off cut in half, and they have been offered a voluntary early retirement option for some long term employees. Jackson Mayor Jerry Gist said he is worried about the hospital’s financial situation. “I know the employees are concerned, and I’m very concerned. We’re talking about families being affected, that they would be laid off,” Mayor Gist explained. Jackson-Madison County General Hospital is a public non-profit, meaning they cannot turn patients away, even if they cannot pay. “Public hospitals have to take the indigent patient, those who have no way of paying and they get the same care, or should get the same care, as someone who has insurance,” Mayor Gist said. Last year, Governor Haslam declined Medicaid expansion coverage from the federal government. Since then, Mayor Gist said many hospitals across the state have been scraping to get by. CEO Bobby Arnold said even though they have not had a major lay off yet, they cannot rule it out. Mayor Gist said this could be catastrophic for the hospital. “With no revenue coming in from the many people they serve, then obviously they cannot continue to operate long term with that type of operation,” Mayor Gist said. Dustin Warren, an ER technician at the hospital said he has heard about the possibility of layoffs, even though it has not come down from hospital administration. “I am worried about it. It’s been talked about around here and stuff like that. But people are always going to be sick so I feel like we’ll always be open,” Warren said. The mayor said Jackson-Madison County General Hospital employs around 6,500 West Tennesseans. The U.S. Secretary of Health and Human Services said the state is losing out on $6.2 million a day in federal funds for public hospitals.
