PeaceHealth, based in Vancouver, Wash., must identify $130 million in savings to close a gap in its budget, according to a report from The Bellingham Herald.
PeaceHealth is considering cost-cutting measures including reduced travel, not filling vacant positions that don't directly relate to patient care, consolidating the number of contractors for some services, curbing overtime, voluntary furloughs and early retirement, according to the report.
Alan Yordy, the organization's president and chief mission officer, stated in a memo that $100 million in savings have been identified and $30 million more must be found in the next two months, according to the report. The large budget gap resulted in part from reductions in reimbursements, fewer patients, required electronic health record system investments and charity care program growth.
In May, PeaceHealth signed a letter of intent to create a "strategic affiliation" with University of Washington Medicine, which is still being reviewed by the state.
More Articles on Healthcare Cost Cutting:
Vanderbilt University Medical Center Braces for More Staff, Budget Cuts
9 Recent Hospital and Health System Layoffs
10 Obstacles Hospitals Face in Achieving Cost Savings