SEVERNA PARK, Md. (WMAR) - The company that has helped patients move again is now fractured. The president and founder of Dynasplint based in Severna Park showed us the product he created over 30 years ago.
"It's constantly working to push the patient out so when I'm done in 2 or 3 months my arm can straighten all the way," said George Hepburn, president, Dynasplint.
Hepburn now has a wellness plan too, which will take at least three months. On Tuesday, Hepburn laid off 500 employees locally and across the country. That's 70 percent of his staff. He says his line of credit with the bank had expired.
"We were negotiating to extend the line of credit. I had no idea that they wouldn't keep extending the line of credit. It was obvious that they wanted me to find another source of funds but we were unable to," said Hepburn.
In a letter to employees, Hepburn says an ongoing federal lawsuit against his company on Medicare billing made it tough to get another lender. Over 50 people had their latest check bounce.
Cubicles are quiet, empty. Hepburn describes it as “horrifying.”
He even laid off his daughter, who was the company's wellness director. Hepburn teared up, saying employees did the same.
Doing the math, Hepburn believes reducing his staff from 661 to 160 people will allow him to pay off $1,000,000 a week and make his company debt free in three months. In fact, some of his sales staff is working with no pay just to maintain relationships.
"We hope that this is short lived, that in three months we'll have the bank paid off and we'll start to call you back," said Hepburn.
But a cut in staff means a cut in patient care, as well. Over 6,000 new patients were fitted every month. Now Hepburn says he'll be able to treat only half of them.
He is hopeful the patient care will return in three months, as well. His goal is to bring back around 400 employees after he pays off a $10,000,000 loan.
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