Community Medical Center, a 151-bed hospital in Missoula, Mont., cut 16 jobs in the wake of decreased Medicaid reimbursement, according to a Missoulian report.
In a memo sent April 20, hospital CEO Dean French, MD, told staff state budget cuts to the Medicaid reimbursement rate resulted in CMC losing more than $6 million in payments for 2018, according to the publication.
"Our focus on women's and children's care, adult rehabilitative care, brain injury patients and the severely disabled, makes our facility more reliant on state Medicaid," Dr. French wrote in the memo. "As we look to the future, the state Medicaid Expansion Act or HELP is slated to end in June of 2019, further challenging hospitals across Montana."
Dr. French did not specify the affected positions, but did say they do not affect direct patient care providers. Megan Condra, CMC's director of marketing and community relations, told the Missoulian all affected positions were in management or were nonclinical staff.
In the memo, Dr. French said all affected employees have been notified of the cuts and that those who qualify will be offered "alternative positions."
"All of the individuals affected made significant contributions to Community Medical Center," Dr. French wrote. "The impact of their not being here is difficult to imagine, for them personally, but also for their colleagues who are still here."
More articles on leadership and management:
Time's '100 Most Influential People 2018' featured 4 healthcare individuals — here's who they are
Your CEO got fired for sexual harassment. Is your board really ready for what's next?
6 takeaways from Jeff Bezos' latest letter to Amazon shareholders