Editor's note: This story was updated at 11:32 p.m. June 3 to add a statement from Rep. Jacob Rosecrants, Sen. Mary Boren, Rep. Jared Deck and Rep. Annie Menz.
Norman Regional Health System announced Monday that it eliminated approximately 10% of positions within the organization, including the closure of some clinics.
According to a statement Monday, the layoffs were done to ensure the sustainability and independence of Norman Regional.
“Like many health systems across the country, we are facing rising costs, workforce shortages, and declining reimbursement,” the statement reads. “These challenges demand bold, proactive steps to preserve our ability to serve the community with high-quality, locally governed healthcare.”
Aaron Boyd, president and CEO of Norman Regional Health System, wrote in the statement that it was one of the hardest decisions the organization has made and he’s grateful for the service and dedication of every team member impacted.
According to the statement, the organization is working on ways to support those affected, including providing severance, continuation of benefits and emotional support resources.
“These reductions are not a reflection of their contributions, but a necessary step to ensure our system remains viable,” Boyd wrote. “We are committed to supporting each individual through this transition and to honoring their time with us.”
State Rep. Jacob Rosecrants (D-Norman) wrote in an Instagram post that the reduction and closure of clinics will negatively affect the community.
Rosecrants also shared a joint statement along with Sen. Mary Boren (D-Norman), Rep. Jared Deck (D-44) and Rep. Annie Menz (D-45).
“We’re deeply concerned by Norman Regional’s decision to lay off 10% of its workforce and close clinics. This isn’t just about rising costs…years of over-leveraging and poor planning brought us here. Our community deserves transparency, not vague promises. These workers didn’t fail the system, the system failed them.
We’ll continue fighting for accountability, sustainable healthcare funding, and protections for the workers and patients who rely on this vital institution.”
Background
In February, the Norman Regional Health System wrote in a letter that it was issuing a request for proposal for a potential sale of the hospital or partnership opportunities with other health systems.
“While this is not a path we originally intended to consider, current financial challenges have led us to evaluate all options that could provide the necessary capital and resources to support our long-term stability and growth,” the letter read. “Unfortunately, despite record-breaking volumes in January, we did not see the dramatic financial turnaround we hoped to achieve.”
On March 25, Norman Regional Hospital Authority Board declared independence for the Norman Regional Health System. Douglas Cubberly, chair and attorney at Redwine and Cubberley, was the only board member opposing the statement for independence.
“I know that it created tremendous dissension for that and the manner in which it came about,” Cubberley said at the meeting. “I do apologize to you all, but the fact remains, though, that I still believe that we should consider those proposals.”
According to a report by Moody’s Ratings, a bond credit rating business, Norman Regional Health System had $328 million in outstanding debt last year. In November, Moody’s Ratings also downgraded Norman Regional Health System’s revenue bonds rating from Ba1, “stable,” to B1, or “significant credit risk.”
SMMHealth, a Catholic nonprofit health system with locations in Moore, Oklahoma City and Purcell, has expressed interest in a partnership, according to the Oklahoman. The Oklahoman also wrote Jimmy Durant, director of government affairs for SSMHealth, answered the request for proposal.
“We are very interested in a partnership with Norman Regional," Durant told the Oklahoman. "Our system submitted an answer to their RFP and we will have a representative attend the board meeting Monday night. We are interested in hearing what direction Norman's board wants to go."
This story was edited by Natalie Armour. Ryan Little and Sophie Hemker copy edited this story.
