At least 86 staff members will be impacted by workforce reduction as part of “numerous operational changes.”

FAYETTEVILLE, Arkansas — The Washington Regional Medical System announced plans to restructure due to “mounting financial pressures,” a move that’s expected to impact dozens of jobs.

The Northwest Arkansas-based hospital system said in a release on May 28 that while patients are not expected to experience a disruption in care, at least 86 staff members will be impacted by workforce reduction as part of “numerous operational changes.”



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“As part of the restructuring, Washington Regional will redesign workflows to reduce administrative burdens to better support bedside and clinical teams,” the release said. “Changes will include consolidation of select management and support functions, resulting in the elimination of positions as the organization works to strengthen its long-term financial stability.”

According to Washington Regional, the move is due to rising labor and supply costs that are affecting healthcare systems across the country.

The release cited an Arkansas Hospital Association statistic that 40% of hospitals in the Natural State were operating at a loss, as well as an American Hospital Association finding that hospital expenses increased 7.5% last year.

“The current health care environment continues down an increasingly difficult path. We are all evaluating our business and implementing significant operational changes,” said Washington Regional CEO Lucas Campbell. “By restructuring our management operations and consolidating roles, Washington Regional will reduce redundancies and optimize efficiency while still providing the high-quality care.”

Campbell was named incoming CEO in April, set to succeed Larry Shackelford, whose retirement Washington Regional said was supposed to take effect May 31.

Similar restructuring efforts have taken place at other local hospitals this year, including Baptist Health Fort Smith, which has shut down numerous departments and clinics and laid off nearly 200 staff members.

Baptist Health also cited “unsustainable losses” and difficulties in the healthcare industry.