MARTINS FERRY, Ohio — East Ohio Regional Hospital announced Thursday that it will begin laying off ancillary services effective Friday, a decision aimed at easing financial pressures and prioritizing payroll disbursement.
In an email sent to staff Thursday, CEO/COO Dr. John Johnson explained that the move comes amid ongoing financial challenges including delayed wage payments for hospital employees.
Despite the cuts, the hospital emphasized that the ER will remain open, but only with limited testing services in lab and imaging. Outpatient services will now be evaluated on a case-by-case basis.
In addition to outlining the layoffs and patient service adjustments, the email included a link to the Ohio Department of Job and Family Services website for employees to begin filing unemployment claims.
Johnson once again signed his email as both CEO and Chief Operating Officer, despite Julie Ross having previously held the COO position without any formal announcement regarding a change.
Following the failure to distribute paychecks last Friday, some employees gathered outside the hospital on Wednesday to protest both the missed payments and what they called insufficient communication from leadership.
Initially, Johnson emailed assurances that he was working to resolve the paycheck issue by Tuesday. However, when Tuesday arrived, he sent another email informing everyone that he had been “unsuccessful” in meeting that deadline.
The layoffs are the latest in a series of financial challenges EORH has faced. The Health Plan discontinued employee health insurance coverage due to the hospital’s failure to meet financial obligations. EORH also set up a payment plan with Belmont County Treasurer Katherine Kelich to repay more than $1.2 million in outstanding property taxes. EORH will make monthly payments of $33,732.14 over a 36-month period.
The city of Martins Ferry has already made an initial payment toward the contract using funds from a 2018 agreement with EORH LLC, which returns 75% of the income taxes paid by hospital employees to the city.
The impending layoffs and reduction of patient services developments follow earlier reports that community organizations, including United Way, have stepped in to aid EORH workers as the employee protest highlights ongoing financial turmoil within the hospital.
