Will Former East Ohio Hospital Employees Get Paid?
The unexpected shutdown of East Ohio Regional Hospital (EORH) sent shockwaves across Belmont County, leaving hundreds of dedicated employees unemployed. In addition, these workers were left without their final paychecks, creating immediate financial hardship and uncertainty.
The central question looming over the community is a simple but profound one: Will the former employees of this Ohio hospital ever get paid for the duty they performed? The answer is unfolding in courtrooms instead of boardrooms, through a series of aggressive legal actions designed to secure the wages these workers are rightfully owed.
Employees of East Ohio Regional Hospital Filed for Involuntary Bankruptcy
In the wake of East Ohio Regional Hospital‘s untimely closure, the employees who dedicated their time found themselves in a dire predicament, as they were left without their final paychecks. Faced with mounting financial difficulties and no clear resolution in sight, a group of these former employees filed for involuntary bankruptcy.
Ex-Employees’ Legal Action: Involuntary Bankruptcy Filing
In response to the hospital’s failure to pay, former employees did not wait passively. They made a bold and calculated move by submitting an involuntary bankruptcy petition against the hospital’s parent company to the U.S. Bankruptcy Court on August 28, 2025. [1] This legal maneuver is a powerful tool used by creditors. In this case, the employees are using it to force a debtor (the hospital) into a court-supervised process of paying what is owed.
By initiating an involuntary bankruptcy, the employees aim to halt the hospital from quietly liquidating assets and to ensure that an impartial third party, a bankruptcy trustee, oversees the fair distribution of any remaining funds. It transforms the fight from a simple collection effort into a formal, federally-monitored proceeding designed to protect the rights of the workers.
Financial Struggles at East Ohio Regional Hospital
The financial struggles faced by East Ohio Regional Hospital have been at the forefront of local news, not only due to its impact on healthcare services but also because of the human cost to its workforce.
The hospital, once a vital healthcare provider in the community, found itself unable to stay afloat amidst mounting financial challenges. This unfortunate turn of events culminated in a sudden shutdown, leaving employees without jobs or their expected compensation.
History of Financial Troubles and Closure
The hospital closure was not an isolated incident but a symptom of a broader, troubling trend in American healthcare. Rural and community hospitals across the country face immense financial pressure.
The hospital closures are widespread, with data showing that 79 healthcare bankruptcy filings occurred in 2023, and 57 in 2024, far surpassing previous averages. [2] In addition, the vulnerability of rural facilities is stark, as between 2005 and 2023, 146 rural hospitals in the US either closed or ceased inpatient services. [3]
EORH’s financial instability, culminating in its closure, reflects a national crisis where operational costs, reimbursement rates, and patient demographics create an unsustainable economic environment that threatens many essential healthcare institutions.
Impact on Employees and Initial Resolution Attempts
The immediate impact of the closure on employees was devastating. Beyond the loss of stable employment, the withholding of final paychecks triggered financial emergencies. Families struggled to pay mortgages, buy groceries, and cover basic living expenses. Before pursuing bankruptcy, the employees sought resolution through more conventional legal channels.
Civil lawsuits were filed, including an amended complaint that consolidated the claims of numerous workers into a powerful class-action suit. These legal investigations alleged serious violations of wage laws. [4]
Employee Claims and Wage Recovery
Employee claims for unpaid wages are central in East Ohio Regional Hospital’s bankruptcy proceedings. The process ensures former employees are compensated by validating claims and liquidating assets, aiming for fair distribution among all creditors, including the employees.
How Proceedings May Help Recover Wages
Bankruptcy law provides special protections for employees. Employee wage claims for earnings within a specific period before the bankruptcy filing are given priority status. This means they are slated to be paid before many other creditors, such as unsecured lenders or suppliers. The legal actions also hinge on significant alleged violations of both federal and state wage laws.
A key part of the employees’ case is the violation of the Worker Adjustment and Retraining Notification (WARN) Act. The WARN Act requires employers with 100 or more employees to provide at least 60 days’ advance written notice of a plant closing or mass layoffs. [5]
The lawsuit alleges EORH failed to provide this notice, entitling employees to back pay and benefits for the violation period. In addition, claims under the Fair Labor Standards Act (FLSA) address unpaid regular and overtime wages, ensuring that all hours worked are compensated according to federal law. The bankruptcy process provides a structured venue to adjudicate these claims and distribute payments from any recovered assets.
Claim Submission Process and Expected Timeline
Once the bankruptcy is officially ordered, the bankruptcy trustee will establish a formal process for all creditors, including employees, to submit their claims. This typically involves filling out a “Proof of Claim” form, detailing the amount owed and the basis for the claim (e.g., unpaid final wages, overtime, WARN Act damages). The trustee will set a firm deadline for submitting these forms.
The bankruptcy filing by former East Ohio Regional Hospital employees marks a significant step in workers’ rights advocacy. It uses federal bankruptcy law to ensure employers fulfill their financial duties, showing that employees have legal means to demand accountability.
This case emphasizes the importance of knowing rights under laws like the FLSA and WARN Act, and highlights how collective action with legal guidance can confront corporate negligence effectively. The loss of EORH showcases the broader economic impact on Belmont County, underscoring the need for financial oversight and community support. The ongoing battle shows the employees’ determined push for justice.
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Sources:
[1] Ex-employees file bankruptcy to ensure wages, transparency at East Ohio Hospital. (n.d.). WTOV. https://wtov9.com/news/local/ex-employees-file-bankruptcy-to-ensure-wages-transparency-at-east-ohio-hospital-bankruptcy-east-ohio-regional-hospital-unpaid-wages-employee-claims-transparency-federal-court-interim-trustee-financial-oversight
[2] HealthLeaders & By Newsweek, August 26, 2025. (n.d.). Bankruptcies are hitting America’s healthcare giants. HealthLeaders Media. https://www.healthleadersmedia.com/cfo/bankruptcies-are-hitting-americas-healthcare-giants
[3] 146 rural hospitals closed or stopped providing inpatient services from 2005 to 2023 in the United States | Economic Research Service. (n.d.). https://ers.usda.gov/data-products/charts-of-note/chart-detail?chartId=110927
[4] Former EORH workers sign onto lawsuit. (2025, May 10). The Times Leader. https://www.timesleaderonline.com/news/local-news/2025/05/former-eorh-workers-sign-onto-lawsuit/#
[5] Challenge validation. (n.d.-b). https://www.dol.gov/general/topic/training/warn-reg-preamble
