Illinois hospital to reduce workforce by 2%

Katherine Shaw Bethea Hospital in Dixon, Ill., will lay off 20 employees, citing financial headwinds affecting health organizations across the U.S., according to an April 4 news release shared with Becker's.

The hospital said the layoffs will occur over the next two weeks, and it will also leave other positions unfilled to reduce expenses amid rising labor and supply costs and reductions in payments by insurance plans. Affected employees largely work in administrative support areas and not direct patient care.

Katherine Shaw Bethea Hospital has 980 full- and part-time positions at the hospital and its related medical offices, and the layoffs represent about 2 percent of its workforce. The hospital said affected employees will receive severance packages, career counseling and assistance in locating employment opportunities.

"In the face of these challenges, we have worked diligently to find other ways to reduce our operating costs and have waited as long as possible before reducing our headcount. Now we need to work proactively in order to protect the long-term sustainability of the hospital," David Schreiner, PhD, KSB president and CEO, said in the release. "At the same time, we recognize and regret the impact this will have on our colleagues and their families. We are committed to helping them through this transition in whatever way we can.

"For the last 126 years, KSB has been here for the community. Our mission remains to restore, maintain, and enhance health by providing superior care now and in the future. These changes will help ensure that we continue caring for the years ahead."

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