Southeast Alabama Medical Center announces layoffs

Updated: May. 24, 2017 at 5:20 PM CDT
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DOTHAN, AL (WSFA) - Southeast Alabama Medical Center confirmed Wednesday that it will lay off approximately 80 employees as part of a 'Strategic Cost Reduction' plan as it moves toward lowering costs by around $30 million annually.

SAMC officials said the layoffs come after a 4-month cost reduction process it calls "Optimization". Three areas were the main focus of cuts including labor, supply costs, and purchased services and labor.

Those affected by the layoffs were from positions at all levels, the hospital said, and were notified of their job status this week.

"We must be sound financially and at the same time be the healthcare organization of choice for employees and physicians," company CEO Rick Sutton said. "Unfortunately," he added, "an organizational restructuring was required to reposition SAMC for future success."

The hospital said reductions were necessary because of its declining financial performance over the last several years, even ending the most recent fiscal year with a negative margin for the first time in a decade.

SAMC, located in Dothan, employs approximately 2,800 people.

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