Alabama hospital lays off 8 employees

Decatur (Ala.) Morgan Hospital — a community hospital that is part of the Huntsville Hospital Health System — has eliminated eight positions, hospital officials confirmed to Becker's.

The layoffs affected two clinical positions and six support positions. None of the positions were directly involved in patient care, and all affected employees were offered severance.

"Revenues were not exceeding expenses, so we had to make some changes," said Nat Richardson, Decatur Morgan president.

Mr. Richardson said other positions were also restructured or reassigned as the hospital restructures its operational model. He estimated the move will save Decatur Morgan $1.3 million.

The hospital expects to save an additional $1.2 million by renegotiating some contracted services.

Mr. Richardson said Decatur Morgan is grappling with the same financial challenges as other hospitals in Alabama, such as the state not expanding Medicaid under the ACA, the state's wage index and insurance reimbursement rates.

"The services we provide in Decatur are as good as services anywhere, yet we get paid far less for those services than hospitals in other states," he said.

Decatur Morgan employs about 1,300 workers.


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