FOR IMMEDIATE RELEASE
St. Croix, U.S. Virgin Islands (July 14, 2026) — Governor Juan F. Luis Hospital & Medical Center is aware of an internal meeting invite that has been circulating publicly regarding a meeting with labor union representatives to discuss a workforce reduction plan.
We understand that the circulation of this internal communication has caused concern among employees, patients, and the community. We want to provide full context for these discussions.
The meeting invite initiated discussions with union leadership regarding workforce planning as part of Juan F. Luis Hospital & Medical Center’s (JFL) and Schneider Regional Medical Center’s (SRMC) financial recovery strategy. No decisions have been made, and no workforce reductions have been approved or executed. Our goal is to work collaboratively with labor partners to identify the most responsible and least disruptive path forward, while meeting our financial recovery and collective bargaining obligations and protecting patient care.
The workforce reduction discussions are not new and should be considered within the broader context of our recovery efforts.
In 2025, the Virgin Islands Legislature enacted Act No. 8985, appropriating $13 million in emergency funding to support vendor payments and help stabilize operations at SRMC and JFL. As a condition of receiving this emergency funding, the legislation required both hospitals to develop and submit an austerity plan outlining measures to improve financial sustainability and strengthen long-term operations.
That plan, submitted in May 2025, serves as the roadmap for the hospitals’ ongoing financial recovery efforts.
It is important to understand that workforce planning is one component of a broader financial recovery strategy developed to strengthen the long-term sustainability of both hospitals.
JFL & SRMC have been actively advancing several initiatives designed to improve financial performance while maintaining quality patient care. These initiatives include:
- Revenue Enhancement and Modernization
- Supply Cost Reductions
- Specialty Service Line Expansion
Workforce planning discussions are the next phase of these ongoing efforts. This approach demonstrates our commitment to addressing financial challenges through multiple strategies, not just through workforce reduction, and to meeting the requirements of Act No. 8985.
JFL & SRMC continue to face significant financial challenges due to rising operating costs, increasing supply expenses, workforce shortages, and reimbursement levels that have not kept pace with healthcare delivery costs.
Personnel costs represent our largest operating expense. Therefore, our financial recovery strategy must include an evaluation of workforce-related expenses. Healthcare staffing involves more than the total number of employees. Some departments face shortages, while others may have staffing levels that no longer align with current patient volumes, operational needs, or available resources. Our objective is not just to reduce positions, but to ensure both hospitals have the right staffing in the right roles, maintain safe, high-quality patient care, and strengthen long-term financial stability.
Hospital leadership has maintained communication with department leaders, employees, governing bodies, government officials, and other key stakeholders about financial challenges and the implementation of the required austerity plan. Engaging labor representatives at this stage continues the collaborative process to ensure that any future recommendations are thoughtful and responsible, as we align with the requirements of the nine collective bargaining agreements (CBAs) represented with the hospitals.
“Our employees are the foundation of our healthcare system, and we recognize the uncertainty these discussions may create,” said Darlene Baptiste, Chief Executive Officer. “These are not decisions we take lightly. Our responsibility is to preserve access to quality healthcare for our community while ensuring the long-term sustainability of JFL and SRMC. That requires thoughtful planning, open dialogue, and responsible stewardship of the public resources entrusted to us.”
As these discussions continue, our mission remains unchanged: to provide compassionate, high-quality, and equitable care to the people of the U.S. Virgin Islands while building a stronger, more sustainable future for both hospitals.
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