The ARH Hospital chain announced cutbacks Wednesday.
The system will consolidate its business offices to central locations over the next 12 months.
ARH President Jerry Haynes says the restructuring will eliminate 35-40 jobs across the system and save between $4-5,000,000.
Yesterday the Beckley, West Virginia ARH announced it was cutting 26-workers.
ARH officials attribute the cuts to a $16,000,000 shortfall in Medicaid reimbursements.
ARH and 60 other hospitals are suing the state of Kentucky to recoup approximately $60,000,000 in Medicaid funds.