Cancer Treatment Centers of America lays off 350 employees

Boca Raton, Fla.-based Cancer Treatment Centers of America has laid off 81 employees at its Zion, Ill., medical center, according to the Chicago Tribune.

The layoffs represent 5.6 percent of the Zion hospital's workforce of 1,400 people, Cancer Treatment Centers of America spokeswoman Kristen Gerlach said in an email, according to the report.

Cancer Treatment Centers of America also laid off employees at its hospital in Schaumburg, Ill., and its headquarters in Boca Raton. The company has let go of a total of about 350 employees this week, representing approximately 6 percent of its total workforce. 

"Like the vast majority of U.S. healthcare providers, Cancer Treatment Centers of America has found it necessary to make certain organizational and staffing changes to align with the reality of the emerging healthcare economy," the company said in a statement provided by Ms. Gerlach, according to the Chicago Tribune. "Our commitment to the delivery of exceptional patient-centered cancer care remains resolute, as does our plan to reach and serve more patients who are seeking our care in the years ahead."

Cancer Treatment Centers of America, a privately held, for-profit company that specializes in complex cancers, completed an $84 million renovation of the 73-bed Zion hospital in November.

However, the Zion medical center's occupancy rates have been lower than initially projected. In its 2013 application for the renovation to the state hospital board, the company forecasted its occupancy rate would rise from 54.3 percent in 2012 to 60 percent in 2013 and 64.4 percent in 2014, according to the report. However, occupancy was only 55.8 percent in 2013 and fell to 50 percent in 2014.

The Zion hospital's patient revenue fell to $615.2 million in 2014 from $649.2 million in 2013, according to the most recent data from the Illinois Health Facilities and Services Review Board, the Chicago Tribune reported. Almost all of the Zion hospital's patients have private insurance.

Note: This article was updated May 6 with information on the additional layoffs in Schaumburg and Boca Raton.

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