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PIKEVILLE, Ky. — Pikeville Medical Center announced Friday around 130 positions have been cut at the hospital.
The hospital’s president and CEO Donovan Blackburn told EKB News the eliminations were due to over-staffing and PMC was experiencing a financial crisis.
Southeast Kentucky Chamber of Commerce President and CEO Jordan Gibson says while Pikeville Medical Center is still the largest employer in Pike County with over 3,000 people still working there, it will put somewhat of a financial burden on the region.
“If you look at 130 people, you know, working in our community, going to the store buying groceries, paying rent, buying cars … going out and supporting all the local businesses in the community,” said President and CEO of the Southeast Kentucky Chamber of Commerce Jordan Gibson, “just assuming that all of those people were working minimum-wage jobs and working full-time, that’s at least a million and a half dollars gone out of the community right now. Some of those people may have been making more than that, I would really estimate closer to two, three, four-million dollars.”
When contacted Monday, PMC CEO Donovan Blackburn said he understands the layoffs will have a negative effect but the potential impact would have been worse if the hospital had not taken action now.
Sheila Salyer was an X-Ray technician at Pikeville Medical Center for 29 years. She was among those laid off from the hospital. She says, the situation is very difficult for her and her family because after this month, her family will no longer have insurance and will be losing a huge chunk of their income.
“I’m 62,” said Salyer, “so, I’m not eligible for full social security retirement, yet. So, my income, if I take it, would have to be based on a reduced social security. Also, it means that I have no insurance as of July 1st. My husband has an illness and he takes several medications that will probably cost us $1,000 a month.”
Those affected by the layoffs were given a two-week severance package and the opportunity to keep their insurance coverage throughout the month of June.