Coeur d’Alene, Idaho-based Kootenai Health is eliminating 80 positions, or less than 2% of its workforce, the Coeur d’Alene Press reported Nov. 10.
The nonprofit health system, which employs more than 4,500 people, did not specify which positions are affected but said they are in areas where it needs to improve efficiency. Notifications are underway or will be made this week, according to the report.
Kootenai Health CEO Jameson Smith said the decisions followed an extensive evaluation of operations and came as the system faces rising costs and reimbursement pressures.
“Medicare reimbursement rates are increasing far below inflation. At the state level, Medicaid coverage and reimbursement in Idaho have been reduced,” Mr. Smith said in a statement, according to the Press. “Reimbursement pressures continue as commercial payers deny or delay payments, and medical supply costs are increasing by double digits.”
Drug costs have also climbed. The system’s annual drug expenses have risen by more than $60 million over the past two years after it lost 340B disproportionate share hospital status, the report said.
At the same time, Mr. Smith said Kootenai Health must invest in expanded hospital space as its community grows. In March, the system broke ground on a medical campus in Post Falls, Idaho, developed through a joint venture with Tacoma, Wash.-based MultiCare Health System. The first phase, which includes a micro-hospital and medical office building, is expected to be under construction through 2027. Kootenai Health also plans to begin the first phase of a main campus expansion in Coeur d’Alene in late 2027.
For affected employees, Kootenai Health said it will try to identify other roles within the organization when possible and provide support resources to those leaving. The system has 139 open positions, according to the Press.
Becker’s has reached out to Kootenai Health for comment and will update this story if more information becomes available.
