Rennova Health Systems has appointed a new CEO to Jamestown Regional Medical Center while laying off 20 employees.
The company announced Monday that Michael Alexander would become the next CEO of JRMC. The announcement comes four months after the hospital appointed Dr. Angel Giraldez as the interim CEO.
Alexander’s appointment comes after several financial-related issues at JRMC nearly closing the facility in May.
Rennova said in a press release that the layoffs were necessary to address some of the hospital’s financial woes.
“We recognize that any reduction in staff causes concern and raises questions and with so much information, including some that are totally inaccurate circulating in the public domain we wanted to ensure that you have information at hand from the company,” the release states.
Rennova said in the release that the financial problems were caused in part by the JRMC switching to a new billing company last December.
“While these mistakes have now been corrected and we expect to receive what we are owed from payers, the past few months of an unexpected cash flow deficit have caused other problems that now require correction as well.”
The hospital will still employ 120 workers for the time being.
Rennova also addressed the decision by the Center for Medicare and Medicaid Services (CMS) to cut JRMC from its program effective Wednesday.
“Every effort is currently being made to correct this matter in the immediate future,” the release states. “Rennova is committed to the citizens of the communities served, for the long term, and we look forward to sharing more positive actions in the coming months as we correct the current situation with CMS, invest in and provide additional services from the hospital.”
According to Rennova, Alexander has spent the last 10 years as the Hospital Administrator of Tanner Health Systems in Georgia.