While at the surface contradictory, the decision by Lawrence & Memorial Hospital in New London, Conn., to lay off employees while expanding through an acquisition and construction is part of its strategy to grow while cutting costs, according to a report by The Day.
Earlier this month, the hospital laid off 22 employees. The hospital also recently completed the regulatory filings for its $69 million purchase of Westerly (R.I.) Hospital. In addition, the hospital is constructing a $34.5 million cancer center as part of its partnership with the Dana-Farber Cancer Institute in Boston.
Lawrence & Memorial President and CEO Bruce Cummings said the hospital must continue to expand while cutting costs, according to the report. "Westerly Hospital and the cancer center are an example of judicious growth strategies. If we weren't doing those things, our future would be far more ominous," he said, according to the report.
At the same time, the hospital's board mandated the hospital maintain at least a 3 percent margin of revenues over expenses for this fiscal year, which necessitated cutting costs, according to the report.
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Earlier this month, the hospital laid off 22 employees. The hospital also recently completed the regulatory filings for its $69 million purchase of Westerly (R.I.) Hospital. In addition, the hospital is constructing a $34.5 million cancer center as part of its partnership with the Dana-Farber Cancer Institute in Boston.
Lawrence & Memorial President and CEO Bruce Cummings said the hospital must continue to expand while cutting costs, according to the report. "Westerly Hospital and the cancer center are an example of judicious growth strategies. If we weren't doing those things, our future would be far more ominous," he said, according to the report.
At the same time, the hospital's board mandated the hospital maintain at least a 3 percent margin of revenues over expenses for this fiscal year, which necessitated cutting costs, according to the report.
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