Mr. Letnaunchyn appeared on MetroNews “Talkline” Thursday to discuss various issues, including Charleston (W.Va.) Area Medical Center Health System’s plans to cut 300 jobs by the end of 2017. Some positions were already cut, but the system hopes to make further cuts through attrition.
Mr. Letnaunchyn said CAMC indicated the system does not take the tough decision lightly, but is implementing the job cuts so the organization remains viable in the future. CAMC is not the only West Virginia hospital implementing cost-reduction initiatives. “They’re not alone. This is happening in other facilities around the state. It’s just not hitting the news because it may not have been at the same level of magnitude,” Mr. Letnaunchyn said, giving the example of Saint Francis Hospital in Charleston, which closed its emergency department and converted it to an urgent care center.
He added, “There are stories around the state that are there. They’re just not as prominent because CAMC, due to their size and the number of employees and the number of patients they serve, this is a big issue.”
He attributed hospitals’ financial challenges, at least in part, to decreased Medicare reimbursement. He said reduced payments for Medicare are offsetting any gains due to Medicaid expansion. He estimates Medicaid utilization in West Virginia is between 23 percent to 25 percent of the population, while Medicare utilization is likely between 45 percent to 50 percent.
So “you’re going to see some more bubbles bursting. You’re going to see some other stories in other communities maybe smaller than the CAMC story where those hospitals are going to be facing again some financial struggles,” Mr. Letnaunchyn said.
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