Washington Regional lays off staff
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Washington Regional Medical System is eliminating 86 positions, citing "financial pressures" affecting health care systems state and nationwide, according to a news release.
State of play: The positions are mostly in management and administrative support, Washington Regional spokesperson Brooke Morgan told Axios.
- "The focus of this restructuring is to streamline workflows, reduce redundancies and administrative burdens to better support our bedside and clinical teams, while also reducing expenses and improving efficiency. Staff members are not being replaced due to AI," she said in an email.
What they're saying: Health care organizations are facing rising labor and supply costs compounded with reimbursement challenges. Washington Regional pointed to the cost of uncompensated care rising nearly 15% in fiscal 2025 and 40% of Arkansas hospitals operating at a loss, according to the Arkansas Hospital Association.
- Confirmation on whether Washington Regional has been operating at a loss was not immediately available Thursday.
The big picture: This is the latest in a string of hospitals scaling back services in Arkansas, where Medicare, Medicaid and private insurers pay health care providers among the lowest amounts nationwide, the Arkansas Advocate reported.
- Arkansas lawmakers in 2025 rejected a bill that would have required minimum reimbursement rates for hospitals.