St. Rita’s Medical Center lays off 49 |
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Saturday, 12 July 2008 11:49 |
LIMA—St. Rita’s Medical Center announced the lay off of 49 employees effective July 9.
Staff reductions are seniority based within departments. Affected employees are to be given severance based on years of service and provided with future bid opportunities, and transition assistance from St. Rita’s Employee Assistance Program (EAP).
A press release from St. Rita’s blames the layoffs on increased need for health care even as revenue from Medicare and Medicaid payments to hospitals is shrinking. In addition, the release states, the need for “charity” care for the uninsured is “exploding.”
“Over the last two years, normal inflation for supplies and employee increases has exceeded our growth in reimbursement by $6 million each year,” says Jim Reber, president and CEO of St. Rita’s. “Four years ago, one in 20 St. Rita’s patients lacked health coverage. Today it is one in 10.”
Brian Smith, St. Rita’s chief operating officer, notes efforts of employees to reduce expenses.
“We are very pleased with the efforts our staff members have made in recent months to reduce expenses and conserve resources,” he says. “As an organization, we will continue to take this approach to do the best with less.”
Mr. Reber stresses the importance of continuing the medical center’s philosophy of being the best place to work, and to continue St. Rita’s mission of caring for the poor and under-served.
“A layoff is difficult and painful,” says Mr. Reber, “but it is necessary to maintain St. Rita’s fiscal strength to continue to serve the citizens of the 10-county area.”
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Last Updated on Friday, 07 November 2008 09:05 |
