The announcement comes as the hospital reports significant financial issues. Layoffs represent a 5.5% reduction in the hospital’s total workforce.
St. Dominic Hospital announced they are shutting down their Behavioral Health Services. The move will result in the layoff of 157 employees.
The decision came on Monday. The press release by the Jackson hospital cited financial issues with the program. The shutdown will include the closure of inpatient treatment programs for mental health resources.
The hospital said the employees selected for termination were not based on performance. Administrators are working with each person to find employment solutions. Employees who received notice will receive full pay and benefits for at least 60 days. The hospital will also offer severance in the event the employees cannot secure similar roles within the hospital.
“We recognize that mental health is a significant need, with various aspects of mental healthcare emerging as six of the top 25 needs identified in the most recent Community Health Needs Assessment,” said Scott Kashman, Market President and CEO, St. Dominic Health Services and St. Dominic Hospital. “While continuing to meet these needs directly is no longer viable for St. Dominic’s, we are working with partners to help patients access the care they need. Our health system will continue to advocate for additional state and federal resources to stabilize healthcare providers in Mississippi.”
The hospital stated:
Similar to many healthcare systems in recent years, St. Dominic’s faces substantial financial challenges. After a thorough assessment of our staffing and services and following losses of several million dollars in the last 3-5 years, St. Dominic’s has determined the immediate need to make significant changes to best serve the patients of central Mississippi and ensure the long-term sustainability of St. Dominic’s. This will help ensure the highest quality and compassionate clinical care while stabilizing financial performance.
No additional admissions to the Behavioral Health Services will be accepted as of June 6, 2023, at 7:00 a.m. The hospital will continue to provide treatment to current inpatients as they work on transitioning patients to other facilities.
The layoff process considered select positions from various service areas. Layoffs impact 157 full-time, part-time and PRN roles. This is a 5.5% reduction in the hospital’s total workforce.
“Throughout its 77-year history, the St. Dominic’s ministry has evolved to meet the ever changing needs of the community it serves with a steadfast focus on quality, safety, patient experience and stewardship,” said Kashman. “After thorough discernment and prayerful consideration, we must again adapt and evolve to preserve the ministry in the face of these economic realities and better ensure the long-term health of the organization. Ultimately, these decisions were made in faithfulness to good stewardship of our mission and the ministries we support.”
St. Dominic Health Services has served the state of Mississippi for more than 70 years. The hospital was originally sponsored by Dominican Sisters of Springfield, IL. It was acquired by Franciscan Missionaries of Our Lady, as apart of the Franciscan Missionaries of Our Lady Health System in 2019.
It is the parent company for several subsidiary organizations including St. Dominic Hospital, the Community Health Clinic, St. Dominic Medical Associations, MEA Clinics, The Club at St. Dominic’s, St. Dominic Health Services Foundation, St. Catherine’s Village and Care-A-Van.
Franciscan Missionaries of Our Lady was also recently announced as the buyers for the Singing River Health System in Jackson County.