WARREN, Ohio – Insight Health Systems on Monday announced a pause of additional services at its local hospitals, which will lead to an unknown number of employee furloughs.
Insight claims the furloughs will be temporary as it works to resolve funding issues. The situation has followed the ongoing transition from Steward Health Care System to Insight.
Included in the latest services affected are the inpatient and outpatient services at Insight Rehabilitation Hospital Hillside and the Austintown and Elm Road outpatient centers.
The emergency department at Insight Hospital and Medical Center Trumbull remains open, as well as the lab and radiology services. However, the hospital announced earlier this month that other inpatient and outpatient services have been paused.
“Due to abrupt developments in Steward Health Care’s bankruptcy proceedings, Steward has ceased funding for healthcare services that were already delivered at Trumbull and Hillside hospitals in recent months,” a statement from Insight reads. “Despite our ongoing efforts, Insight has been unable to secure the release of these funds from Steward, even as government authorities have requested guaranteed weekly payments to ensure continuity of care. We continue to work diligently toward a resolution, but progress has not reached a point that allows for operations as usual.”
Steward filed for bankruptcy May 6, 2024, and Insight took over the Trumbull County facilities in November, which stopped a slated closure of the hospitals at that time. The community, including employees, county commissioners, city officials, union members and others had rallied together looking for solutions before Insight stepped in. Insight explained Monday that the furloughs are in no way connected to efforts of employees.
“We expect these furloughs to be temporary, with plans to bring staff back within six months,” Insight’s statement says. “This unfortunate situation is in no way a reflection of our employees’ outstanding commitment to delivering compassionate, high-quality care. We are deeply grateful for their dedication during these uncertain times.”
The announcement Monday came less than a week after Insight first announced potential layoffs, which it stated was a “strategic realignment” affecting full-time, part-time and previously furloughed roles. A week earlier, Insight announced the pause to the majority of inpatient services at Trumbull hospital.
A mid-March bankruptcy court decision allowed Steward to sell to Golden Sun TSA Services LLC its transition service agreements with several hospitals, including the local hospitals in Trumbull County. Those services included patient billing and records.
Golden Sun TSA Services, an affiliate of Quorum Health in Tennessee, denied claims by Insight that it raised the price for access to those services.
Other entities in the community are monitoring the situation.
“The City has maintained strong communications with Insight leadership both corporate and local,” Mayor Doug Franklin said in a statement released by his office. “We were made aware of the possibility of structured realignment of our local facility. The city will remain supportive during this process.”
Neither AFSCME Ohio Region 8, which represents many of the nurses at the facilities, nor the Ohio Nurses Association responded to Business Journal requests to comment.
The Warren hospital announced March 13 it was parting ways with former President Cindy Russo and would be led by Chief Medical Officer Dr. Gray Goncz, who was taking on the added roles of president and chief restructuring officer. As of Monday, Goncz continued in the role as CMO, and the hospital announced that Insight’s CEO Dr. Jawad Shah will serve as president of the Warren and Howland hospitals. Insight also reemphasized its commitment to the community.
“Under his leadership, Insight is committed to rebuilding both hospitals as nonprofit, physician-led, and patient-centered institutions,” the Insight spokesman said. “In the months ahead, we will redesign operations to be fully independent of Steward’s management, cost structures, and legacy software systems. We remain steadfast in our mission to serve the community with integrity and excellence, and we thank our staff, patients, and partners for their continued support.”
Insight has not yet filed any WARN notices in connection with the furloughs.
Pictured at top: Insight Hospital and Medical Center Trumbull in Warren.