For the past two years, the 25-bed critical access hospital posted significant operating losses, stemming from declining patient volume, reduced Medicaid and Medicare reimbursements and increasing cost of care. This challenging financial environment has required management to make difficult decisions to ensure the viability of the hospital.
“Reducing staff members was an extremely difficult decision. The dynamics in the healthcare industry are only going to become more challenging for hospitals over the next several years. I commend the Board for focusing on the long-term future of the organization in this uncertain time,” Charles Kelch, Palo Alto County Health Systems’ interim administrator, told Emmetsburg News.
The 19 employees impacted were notified the first week of October.
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