CHILLICOTHE, Ohio — Adena Health System is preparing to layoff 148 employees in response to a dire financial situation that has left the organization reeling. The decision comes on the heels of a damning financial report obtained by the Guardian, revealing that Adena suffered a staggering loss of $88 million last year.
In stark contrast, the health system had reported profits of nearly $60 million in 2021 and $70 million in 2020, respectively. The abrupt shift to an $88 million deficit in 2022 marks the first time in decades that the Health System has operated at a loss, which has been on a steady decline under the direction of Chief Executive Officer Jeff Graham.
Meanwhile, other non-profit hospitals across the state, including OhioHealth, have reported record-setting profits in their annual filings, highlighting a contrast in financial performance within the healthcare sector.
The layoffs have been triggered by Adena’s large negative cash balance, as indicated in the financial report. According to the report, the hospital’s remaining funds would only sustain operations for another 172 days without accumulating further losses. In contrast, in the previous two years, the hospital had enough financial reserves to stay afloat for nearly two years.
Adena Health System has remained tight-lipped about the impending layoffs, declining to comment on the situation despite repeated requests for information. The layoffs are scheduled to begin imminently and will unfold gradually over the course of the next month. This approach appears to be a strategic move aimed at avoiding the classification of a “mass layoff,” as suggested by internal memos within the organization. The departments that would be impacted were not immediately released.
The news of the layoffs has raised concerns among employees and the community, as Adena Health System has long been a significant healthcare provider in the region. The financial challenges faced by the institution has many wondering if the mega health system will soon have a for sale sign or declare bankruptcy.
