T.J. Samson Community Hospital in Glasgow announced Wednesday that it will cut between 39 and 49 employees from all departments beginning immediately. The hospital released the news at a news conference in Glasgow.
The Bowling Green Daily News reports interim CEO Henry Royse said the difficult decisions were based on a costly roll out of an inadequate financial software program and the impact of the Affordable Care Act. Besides the staff layoffs, senior management and salaried physicians will have their pay cut by 10% and employees making more than $10 an hour will see reductions of 2% to 6% beginning in September.
Despite the decisions that the hospital was faced with, the administration claims to be still encouraged by the hospital's future. The cuts won't impact the quality or access to care "that drives nearly 1,200 employees of T.J. Samson every day," according to a news release.
This latest news comes after the non-profit hospital offered employees early retirement last year. At least two dozen people, including then CEO Bill Kindred, accepted that offer.
A lawsuit filed against TJ Samson Community Hospital in Glasgow seeks to seat a new board of trustees at the hospital.
The Bowling Green Daily-News reports the suit was filed Thursday in Barren Circuit Court by Warren County attorney Alan Simpson. The suit claims that the original agreement incorporating the hospital in 1926 called for a board of trustees to be elected by those who had contributed more than $25 to the establishment of the hospital.
Those suing say a change to the articles of incorporation in 1968 disenfranchised those original shareholders.
An attorney for TJ Samson says the lawsuit is baseless and without merit, adding that the way the governing board is selected has never before been challenged.
A group of Barren County citizens has mobilized to challenge recent changes at the hospital, including a 2011 decision that only one corporate member, TJ Regional Health, would act and vote through its board of directors. The lawsuit says the for-profit TJ Health Partners was later formed and is thought to be a subsidiary of TJ Regional Health.
Many local doctors’ practices have recently been purchased by the Health Partners, a growing trend nationally as the health care environment undergoes fast changes.