The layoffs represent 5 percent to 6 percent of the hospitals’ combined workforce of more than 1,200.
The hospitals’ parent company, Alecto, attributed the job cuts to national trends among rural hospitals, such as declining inpatient care, decreases in Medicare reimbursement and the expense of maintaining aging facilities, according to the report, which cites a company news release.
Alecto, which bought the struggling hospitals in 2017, said the hospitals “have operated at an unfair disadvantage in the marketplace.”
Daniel Dunmyer, president and CEO of both hospitals, said the cuts were necessary.
He told The Intelligencer: “We have been working very hard to achieve reductions in operating costs while improving efficiencies. Unfortunately, these measures have not yet resulted in sufficient cost savings to our hospitals.
“Our administrative team reviewed the staffing levels in each department to ensure the operational needs of the two facilities continue to be met, as well as to address areas where changes can be made. As a result of the ongoing need for cost reduction, we have determined that it is prudent to implement a restructuring of our current workforce,” said Mr. Dunmyer.
He did not indicate what positions are affected by the layoffs. According to the report, those affected are eligible for rehire if they qualify for a hospital job, and they are being offered unemployment compensation and continued health coverage.
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