The system experienced its largest loss ever in 2013, totaling $11.7 million. Several factors contributed to the deficit, including rising expenses due to the increased use of temporary physicians, increased employee health insurance costs and the implementation of a new medical records system. YKHC was also dramatically affected by the federal sequester, as it cut the Indian Health Service’s budget by 5.1 percent. YKHC is a tribal organization.
“I know this reduction in force will be a significant hardship on our employees and their families, but it is necessary for YKHC to stop spending far beyond its actual revenues,” President and CEO Dan Winkelman said in the announcement.
In addition to the layoffs, YKHC plans to increase its revenue collections.
“We are confident that as we make these significant expense reductions and continue improving our revenue collections, YKHC’s financial performance will improve,” Mr. Wilkelman wrote.
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