Cape Fear Valley moves to restructure Harnett Health
Posted November 7, 2014
Lillington, N.C. — Days after taking over daily management of two hospitals and several clinics in Harnett County, Cape Fear Valley Health officials said Friday that they would lay off 19 people at the facilities as part of a financial restructuring plan.
Harnett Health, which includes the 101-bed Betsy Johnson Hospital in Dunn and the 50-bed Central Harnett Hospital in Lillington, lost $24 million last year and is on track to lose $16 million this year, officials said.
“The reduction in workforce is an effort to adjust staffing to industry benchmarks,” Mike Nagowski, chief executive of Cape Fear Valley Health, said in a statement. “The 19 employees affected will be offered severance packages and outplacement services. They will also be able to apply for vacant positions at other hospitals and facilities in the Cape Fear Valley Health network.”
In addition to the layoffs, Cape Fear Valley Health plans to work with local physicians to refer patients to Harnett Health rather than out-of-county hospitals and recruit more specialists for Harnett County.
The Fayetteville-based hospital system also wants to get Harnett Health caught up on billing and collections from insurance companies and to renegotiate supply contracts to cut costs. As one of the larger health systems in the state, Cape Fear Valley also plans to use its existing contracts to bring economies of scale to Harnett Health.
“We are confident we can assist Harnett Health in the creation of a vibrant, growing health system that is able to meet the community’s need for health care,” Nagowski said.
WakeMed had managed Harnett Health since 2005, but officials with the Harnett County system wanted more daily interaction with its management partner and agreed last week to join forces with Cape Fear Valley Health.