Job, service cuts will allow New York hospital to break even, CEO says

Lockport, N.Y.-based Eastern Niagara Hospital will cut jobs and services to help it improve its financial picture, CEO Anne McCaffrey told The Buffalo News.

The remarks come after the hospital reported a loss of $8 million on its 2018 operations.

However, "with these service line closures and the state operational money, we expect to break even," Ms. McCaffrey said.

On May 1, Eastern Niagara revealed it will close its maternity unit and eliminate dialysis, express care and X-ray services at its facility in Newfane, N.Y.

The plan will result in 41 layoffs and estimated annual savings of $2.1 million annually.

While Ms. McCaffrey expects this to help the hospital financially, she said Eastern Niagara is also going after a state grant to pay off $8 million in debt, some pension expenses and other equipment and capital costs.

Ms. McCaffrey took on the CEO role in August 2018.

 

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