Altru Health trims executive staff, to borrow up to $125M for new hospital

Grand Forks, N.D.-based Altru Health will need to borrow up to $125 million to cover the burgeoning costs of labor and supplies for its new hospital project, according to an April 5 Grand Forks Herald report. It is also cutting its numbers of executives.

Advertisement

As the project moves ahead, the hospital group is also seeking to cut staffing costs, trimming its executive numbers from nine to six and incentivizing 34 other employees to take early retirement.

Despite the need to raise more money, the project remains on time, CEO Todd Forkel told the newspaper.

The seven-story building, which is due to be completed in 2024, will not likely see its first patients until early 2025, he said.

The $380 million project will have 226 beds, a neonatal intensive care unit and a trauma operating room, as well as other facilities.

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.