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MUSC health system lays off Midlands executives, administrators amid financial concerns

Several executives and administrators have been laid off from MUSC Health University Medical Center’s Midlands division after a budget shortfall of $40 million in the first half of the fiscal year.

The exact number of employees who were laid off is not yet available, MUSC spokesperson Heather Woolwine said Friday. The layoffs came from across three of MUSC’s four Midlands facilities — its two hospitals in Columbia and one in Camden.

The layoffs did not affect medical staff, including doctors and nurses, Woolwine said.

A budget report detailing losses was released during MUSC’s February board meeting. Layoffs followed during the second week of March, according to Woolwine.

Along with the layoffs, division CEO Terry Gunn resigned on Feb. 24. Woolwine said she could not give specifics detailing why he resigned.

Tom Crawford, formerly MUSC Health’s system chief operating officer, was named the interim CEO of the Midlands Division.

The layoffs were first reported Friday by The Post and Courier.

MUSC purchased four struggling hospitals in the Midlands in 2021 for $75 million from Tennessee-based LifePoint Health, a for-profit health network. MUSC is expected to invest a total of nearly $150 million in the properties, which include the former Providence Hospital on Forest Drive near downtown Columbia and an associated facility in northeast Columbia, the former KershawHealth hospital in Camden, and a freestanding emergency room in Fairfield County.

None of this month’s layoffs were at the Fairfield facility.

“When you acquire facilities like this, these are facilities that were having some pretty significant financial struggles,” Woolwine said. “It takes time.”

MUSC does not expect the facilities it acquired from LifePoint Health to become profitable until about 2024.

Layoffs were part of the strategy to meet margins more quickly, including efforts to lower operational costs, improve workflow and introduce new technology, Woolwine said.

“We need to remain competitive in the Midlands, so we need to focus on delivering high-quality patient care. That means reinvesting in our organization,” Woolwine said. “It required restructuring, including downsizing.”

But the nature of these facilities was not the only reason the Midlands division financial report showed struggles, Woolwine said. Inflation and rising costs across the entire health care industry are also affecting MUSC.

The facilities are still viable and expected to become profitable, Woolwine said.

“Sometimes when stuff like this comes out, people are worried about MUSC’s overall commitment,” Woolwine said. “Unequivocally, MUSC remains committed to the success of each facility in the Midlands region.”