Eastern State Hospital to Drop 65 Employees

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LEXINGTON, Ky. -- Eastern State Hospital will lay of as many as 65 employees as the psychiatric hospital moves to a new $129 million campus in Lexington. But, officials say, most of those losing a job may to reapply for work at the new facility.

Bluegrass.org interim CEO David Hanna says employees affected by the layoffs have been notified, but written notices will be sent this week.

In January, Gov. Steve Beshear announced that University of Kentucky HealthCare would operate and manage the new Eastern State Hospital, which is scheduled to open in early September.

From Aug. 15 through June 30, UK will be paid $34.7 million through a contract with the state Cabinet for Health and Family Services. Thereafter, UK would be paid about $43 million annually.

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