The facility recently laid off 60 employees and announced a new CEO Kelly Adams, a partner in ER Hospital, a firm hired by the hospital’s owner Lateral Investment Management.
In January 2018, the California-based equity firm Lateral Investment Management was the sole bidder on the hospital with its $28.5 million bid. Lateral is know as a provider of financing to owner-operated and family-owned businesses which are navigating through discontinuous growth events. It provided interim financing for Green Valley Hospital during its bankruptcy proceedings filed in 2017.
ER Hospital is in the business of leasing, managing and owning small to medium size acute care hospitals that are distressed or underperforming. Adams previously worked as the CEO of Las Vegas-based Sana Behavioral Health Hospital and CEO of Desert View Hospital in Pahrump, Nev.
Adams said the layoffs are a necessary financial restructuring as it reorganized under Chapter 11 bankruptcy. According to Green Valley News, those who lost their jobs were given one week’s severance and were told they could apply if the positions are reinstated. Adams told the Arizona Daily Star he met personally with all laid off employees and was hopeful about their future,
It’s a sensitive time for the company. Every one has been a valuable employee, and we look forward to the time we can rehire them, sooner rather than later.
The new 49-bed hospital opened in 2015 and has had a string of leadership changes from the beginning. It was first overseen by David Wanger who was replaced by David Covert in January 2016, and by fall Covert was replaced by John Matuska and now Adams.
In January, Matuska stated that no layoffs or changes were expected for the 316 full and part time employees of Green Valley as the hospital made its way through a 6-month bankruptcy process intended to reorganize the hospital’s finances and eliminate some of its debt.
The hospital serves southern Arizona’s Santa Cruz Valley including:
- Green Valley
Read the story from the Arizona Daily Star
Read all the local coverage from the beginning at Green Valley News