Hospital officials attributed the job cuts, which are slated to take place in February, to a decline in inpatient hospital stays, among other factors, the article states. Hospital officials noted that when fewer patients stay overnight in the hospital, fewer staff are needed on duty.
“… While we regret the impact this move has on the individual employees affected, we recognize that these steps are necessary in order to remain viable in the current rapidly-changing healthcare environment,” Bill Castle, HMC’s interim CEO and CFO, said in a news release, according to the report.
Hospital officials said they tried to minimize the number of affected employees by cutting open positions first and then realigning certain job functions, reoprts the Huron Daily Tribune.
In addition to the job cuts, HMC said it has looked at other ways to boost revenue and reduce costs to improve its financial picture after several years of operating losses, according to the report. Hospital officials said workforce reductions account for about 18 percent of the cost savings planned for HMC, the report states.
By implementing all of these cost-saving initiatives, HMC expects to improve its operating performance by approximately $3 million annually, according to the report.
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