Stamford Healthcare System Announces 29 Layoffs
ABILENE, Tx — June 20, 2018
The meeting of the board of directors of the Stamford Hospital District and the Jones County Regional Healthcare System approved the closure of the Regional Services Department of Stamford Healthcare System. 29 employees will lose their jobs.
The Regional Services Department was created in 2016 to create additional services and revenue for the hospital district but will now be closed because of the refusal of insurance companies to pay for healthcare services has decreased the viability of the program, according to the statement released by authorities.
“In a compassionate gesture,” the board approved a two-week severance package for all employees impacted by the closure of the department, the statement said.
According to the Abilene Reporter-News, the facility has endured “extreme financial difficulties” over the past year due to non-payment by major insurance companies.
It is not a surprise to many people that hospitals are facing financial difficulties. Hospitals have consistently faced financial difficulties even in a good economy. However, the current credit crisis is affecting hospitals more than any other organization. Now more than ever before hospitals are facing increasing debt and are unable to gain more capital or refinance their existing loans because it has become more difficult to obtain credit. As a result, hospitals all over the country are filing bankruptcy, and some are even closing down.