Grays Harbor Community Hospital lays off another 23 employees

Aberdeen, Wash.-based Grays Harbor Community Hospital laid off 21 unionized employees and two Harbor Medical Group employees as it continues efforts toward financial viability, according to a hospital update.

The layoffs are a part of overall recommendations from Navigant consulting firm, which Grays Harbor has worked with for roughly six weeks to improve its financial standing. Earlier in March, the hospital laid off 24 percent of its leadership after a concentrated evaluation with the consulting firm.

"In this short period of time we have worked with 13 Navigant team members in 38 departments of the hospital," hospital officials said. "There have been more than 200 consultations specifically focused on continuing quality care for the community of Grays Harbor. This is most definitely an all hands-on deck approach to financial viability."

Overall, Navigant recommended the hospital target a $5.5 million reduction in workforce. Since November, 61 employees have been affected by layoffs at Grays Harbor. This includes the 10 leadership jobs, the 21 unionized employees and the two Harbor Medical Group employees. The hospital also subcontracted billing services in January, resulting in the layoff of 21 employees., and cut seven health information management employees in November.

Other recommendations from Navigant included $3.2 million in revenue cycle enhancements, $1.6 million in supply chain improvements and $3.8 million in clinical effectiveness.

The hospital said all of these recommendations are designed to improve cash flow. Additionally, the hospital said it plans to implement its rural health clinic project go-live April 16, which is designed to allow the hospital to receive cost-based reimbursement for primary care. It also plans to implement a state budget proviso that officials said will allow Grays Harbor to receive 150 percent of the Medicaid fee schedule until June 30, 2019.

Additionally, the hospital said it has created a leadership transformation team "to provide tools and training to employees in order to achieve long term sustainability. A roadmap for success includes trainings, one-on-one reviews and action plans for growth initiatives."

 

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