Cape Fear Valley Health Lays Off 138 People as It Cuts 200 Jobs
The Cape Fear Valley Medical Center at 1638 Owen Drive in Fayetteville. Credit:CityViewCape Fear Valley Health announced Wednesday that 138 people are losing their jobs as approximately 200 positions are being. . .
The Cape Fear Valley Medical Center at 1638 Owen Drive in Fayetteville. Credit:CityViewCape Fear Valley Health announced Wednesday that 138 people are losing their jobs as approximately 200 positions are being eliminated across the health system. The remaining 62 positions were vacant. The hospital system pointed to familiar financial pressures—declining federal reimbursements and rising costs—as contributing to the layoffs, according to a press release. But the system’s celebrated new medical school, the Methodist University Cape Fear Valley Health School of Medicine, and a new medical building did not play a role in the cuts, according to the healthcare provider. A hospital spokesperson declined to respond to questions fromCityViewor provide additional details about the layoffs and what positions were eliminated. Cape Fear Valley Health is a regional not‑for‑profit system with eight hospitals, more than 100 outpatient clinics, over 1,000 beds, and more than 1 million patient visits a year. It employs about 9,500 staff and more than 1,000 medical providers across its facilities in several counties, including Bladen, Cumberland, Harnett, and Hoke. Despite the press release describing the medical school and a new medical office building as part of the “health system’s long-term plans for a sustainable future for healthcare in the region,” the hospital said financial pressures “have necessitated these decisions. ”“These decisions reflect the challenging environment facing healthcare organizations across the country,” said Dan Weatherly, chief executive officer at Cape Fear Valley Health. Hospital leaders said they had already attempted other cost‑saving measures before announcing the workforce reduction. “These are difficult decisions, and they are never made lightly,” Weatherly said. “They impact colleagues who have contributed so much to our patients and to our mission. We are committed to a strong and accessible health system for the communities we serve and that responsibility drives our decisions,” he added. Cape Fear Valley Health said it is supporting affected employees through career‑transition assistance, including priority placement in other roles within the organization and separation packages for eligible employees. The hospital said the changes are part of a broader realignment aimed at ensuring long‑term operational and financial stability. The move also follows a national trend of hospitals adjusting to market pressures and rising costs, according to the health system. The announcement comes just weeks after themedical school cut the ribbon on its $60 million,200‑room building on June 11. Founding dean Dr. Hershey Bell has credited former CEO Michael Nagowski with originating the idea for the school in 2019. Nagowski, 61, retired June 30after more than 18 years leading Cape Fear Valley Health. Cape Fear Valley emphasized that the medical school and other expansion projects are funded through philanthropic gifts, grants, and capital sources, which cannot be used for payroll or daily operations. Editor’s Note:Cape Fear Valley Health is aCityViewadvertiser. Rachel Heimann Mercader isCityView'sgovernment reporter, covering the City of Fayetteville. She has reported in Memphis, the Bay Area (California), Naples (Florida), and Chicago, covering a wide range of stories that center community impact and institutional oversight. More by Rachel Heimann Mercader