In a move that has affected the lives of over 200 employees, Phoenix-based St. Luke's Behavioral Health Center has furloughed most of its workforce following a suspension of its hospital license due to equipment malfunctions. According to a report by ABC15, St. Luke's employees were informed about the furlough during a group phone call staff meeting, where they were told they could use their paid time off (PTO) to maintain their income or apply for positions at other Steward Health facilities.
Steward Health Care, the owner of St. Luke's, has stated that the furlough was necessary and that they aim to quickly resolve the issues. The company has assured that "as with employees furloughed during Covid, while they will not be paid, employees can use paid leave/PTO." The statement added, "In addition, all employees will receive their full health care coverage through at least September 30, 2024," as obtained by 12 News.
The closure of the facility came after the Arizona Department of Health Services ordered a cessation of its operations earlier in the month. There have been a variety of complaints from both former and current employees addressing the condition of the facilities, which seemingly contributed to the state's decision. Meanwhile, the furlough officially began on August 26.
This decision comes amid ongoing challenges for Steward Health Care, which has filed for bankruptcy and is planning to sell more than 30 hospitals across the country. Not only is the company facing financial turmoil, but it is also under federal investigation by the Senate Health Committee. The CEO of Steward Health has been subpoenaed to appear before Congress to clarify the circumstances. On the state level, Arizona Attorney General Kris Mayes has announced intentions to further investigate the bankruptcy situation according to a statement shared by 12 News.
