10 Hospitals and Health Systems That Recently Announced Layoffs
1. Alvarado Hospital: 249 positions. Less than two months after its purchase by Prime Healthcare Services, Alvarado Hospital in San Diego announced it will cut 249 positions throughout the hospital, according to a San Diego Tribune report. Layoffs will take effect March 13 and are expected to hit 91 nurses and 10 pharmacists, in addition to the other 148 employees. Prime said the layoffs are occurring because of a reorganization brought on by millions of dollars in lost state and federal funding, including a recently-lost contract to care for state prison inmates.
2. Shore Memorial Hospital: 81 positions. Shore Memorial Hospital in Somers Point, N.J., has announced it will pare down its staff by around 81 employees, a decrease from the original estimate of 90 employees, according to a Shore News Today report. The hospital said that 22 registered nurses' positions have eliminated, but all but seven nurses have found other positions within the hospital. Shore Memorial Hospital president and CEO Ron Johnson announced the upcoming layoffs in December and offered buyout packages. Of the affected employees, 43 staffers took the buyout packages.
3. Skagit Valley Hospital and Skagit Regional Clinics: 65 positions. SVH and SRC in Mount Vernon, Wash., notified employees on Wednesday, Jan. 26 that 127 staff members would be laid off or face reduced hours as part of necessary budget reductions, according to a Seattle Times report. According to the hospital, employment will be reduced by the equivalent of 65.3 employees. Hospital CEO Gregg Davidson said the layoffs come from a combination of increases in uncompensated care and the potential for budget cuts at the state and federal level. The reductions and changes in staff will take place throughout February.
4. Faxton-Saint Luke's Healthcare: 52 positions. Faxton-St. Luke's Healthcare in Oneida, N.Y., announced plans to lay off 24 employees and eliminate an additional 28 vacant positions. The positions affected are clinical, non-clinical, supervisory and non-supervisory, according to a WKTV report. The hospital will also close its elective outpatient maintenance pulmonary rehabilitation program and cease to provide a dedicated nurse for the women's health education and referral service. Since August of last year, the hospital has experienced five consecutive months of operating losses, according to the report.
5. West Shore Medical Center: 32 positions. West Shore Medical Center in Manistee, Mich., has announced plans to eliminate the equivalent of 32 full-time positions, as the hospital attempts to slash its budget by $2.5 million dollars over the next 12 months. Some workers will be laid off, and others will move to part time, according to an Interlochen Public Radio report. The hospital's financial problems mirror issues plaguing many Michigan hospitals, as the state healthcare industry experiences rising costs and decreased revenue.
6. St. Elizabeth Medical Center: 30 positions. St. Elizabeth Medical Center in Utica, N.Y., announced in early January that it would lay off 24 positions and eliminate 16 vacant positions, including management, clinical, non-clinical, union and non-union staff. According to a WKTV report, St. Elizabeth is also working to improve efficiencies in any area where they can combine jobs. The hospital is also looking at overtime and curtailing unnecessary hires as ways to drive down expenses. St. Elizabeth has experienced over $11 million in state Medicaid cuts over the past three years.
7. Emanuel Medical Center: 22 positions. Citing a growing patient base that is often unable to pay for care, Emanuel Medical Center in Turlock, Calif., announced it will lay off 22 people — 1.5 percent of its work force. Eliminated positions include management, non-management, clinical, non-clinical, part-time and full-time, according to a Modesto Bee report. According to John Sigsbury, the hospital's CEO, EMC has been adversely affected by the economy, and uncompensated care at the hospital grew from $52 million in FY2010 to $58 million in FY2011. The hospital will offer severance packages and help finding new jobs to employees affected by the layoffs.
8. HCA Palmyra Medical Center: 22 positions. HCA Palmyra Medical Center in Albany, Ga., announced it plans to lay off 22 employees because of the sale of the hospital to Phoebe Putney, according to a WALB report. According to the hospital, the agreement between Phoebe and Palmyra calls for the buyer to hire substantially all of Palmyra's employees with the exception of any that may not meet the buyer's eligibility requirements. Around 22 employees do not meet the requirements. The employees were told they will receive severance packages from HCA Palmyra.
9. Bluefield Regional Medical Center: 20 positions. Bluefield (W. Va.) Regional Medical Center has eliminated about 20 full-time positions, most of which are non-clinical, according to a WHSV report. The hospital said in a news release that layoffs would not affect patient care, and affected employees would receive severance packages. According to Bluefield spokesmen, the layoffs are part of an effort to reduce operating expenses and control costs while improving the facility and implementing growth strategies. BRMC employs more than 870 workers.
10. Sinai-Grace Hospital: 20 positions. Vanguard Health Systems has begun restructuring Sinai-Grace Hospital in Detroit, part of eight-hospital Detroit Medical Center. Vanguard acquired the hospital system at the end of December. Part of the restructuring involves laying off 20 employees not involved in patient care, a move that will allow the hospital to hire 20 new workers who are directly involved in patient care. Vanguard pledged not to close any DMC facilities for 10 years but made no pledge regarding layoffs.
© Copyright ASC COMMUNICATIONS 2012. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.
To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.