Montrose (Colo.) Regional Health has eliminated 77 positions as part of an organizational restructuring, citing flat insurance payments and rising operating costs.
The cuts, effective Oct. 12, include 34 employees who were laid off and 43 vacant positions that will not be filled, according to a statement shared with Becker’s. Affected roles include 12 leadership positions, three physicians and three advanced practice providers. Of the 77 positions, 36 were in direct patient care.
The health system said patient volumes grew about 10% over the past year while cash payments from insurers stayed essentially flat and costs for labor, supplies and other operations increased. About $25 million in insurer payments remains outstanding, and the health system said it is pursuing collection efforts and legal action to recover the money.
The reductions are expected to cut annual expenses by more than $8 million, according to the statement. Montrose Regional Health also discontinued cardiology services in Telluride, reduced pediatric occupational therapy availability, scaled back several therapy wellness programs and combined its sleep and pulmonary clinics. The system said it does not expect changes to critical hospital-based services and has no additional workforce reductions planned at this time.
“Reducing our workforce is one of the most difficult decisions we can make because it directly affects people who have contributed to MRH and our community,” CEO Jeff Mengenhausen said in the statement.
Montrose Regional Health has more than 950 employees and a 75-bed hospital, according to its website.
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