LA hospital lays off workers due to Gustav's lingering effects

River West Medical Center in Plaquemine, La., which filed for bankruptcy nearly two weeks ago, just announced that it has laid off 100 employees due to the lingering effects of the damage caused by Hurricane Gustav last summer. 

According to Modern Healthcare, the hospital's damage totaled around $6.5 million; what's more, River West remains in a battle with its insurance company over more than $4 million in "business-interruption insurance." Jim Cheek, president and CEO of Shiloh Health Services--which purchased River West in 2007--said that the job cuts should have happened "months ago," but the hospital chose to keep its workforce in tact. Part of that decision was based on an advance of $150,000 in Medicaid funds given to the hospital. 

For more information:
- check out the Modern Healthcare article