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| Memorial blames economy for 47 layoffs |
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The Tribune Democrat, January 20, 2009 - Decreasing patient volumes and loss of investment income during the economic downturn led the layoffs of 47 Memorial Medical Center employees Tuesday. Layoffs affected employees in support areas but did not include hospital nursing staff, hospital executives announced. “Careful planning and much thought went into this process, and our goal was to maintain as many jobs as possible while meeting our fiscal responsibilities in this unprecedented economic environment,” hospital President Steve Tucker said in a news release. The cutback represents a little more than 1 percent of Memorial’s 3,700 employees. Severance packages, counseling and help with finding another job are being offered to affected employees. Some may be able to take new positions within the Conemaugh Health System. “We know that even one job lost is one too many,” Tucker said. “Every effort was made to keep the number of impacted employees to a minimum through attrition and other fiscal interventions.” Those fiscal interventions include adjustments to employee benefit packages, fewer outside consultants and other belt-tightening measures, sources said. Dr. David Carlson, Conemaugh’s chief medical officer, said, “We have seen a decline in volume at Memorial Medical Center in the past few months due to the economy. “This is concerning, not just for the financial impact to the hospital but to the health and well-being of the patients who are not seeking the care they need.” Memorial is not alone. A Hospital & Healthsystem Association of Pennsylvania report issued earlier this month showed three-quarters of the state’s hospitals expect a moderate to significant effect on their financial stability this year. “The current economic crisis imperils hospitals – our community safety net – and the patients who depend on them,” association President Carolyn Scanlan said in the report. Financially wary patients are delaying elective surgeries, which often are the more profitable procedures for a hospital, association spokesman Roger Baumgartner said. Cutbacks in other industries have sent more patients to emergency and behavioral health departments, often without the means to pay. “We get more people in this economy coming in who are uninsured or underinsured,” Baumgartner said. “There are more people using emergency departments as the primary support.” Community hospitals such as Memorial can’t turn away patients in need, Baumgartner added. The Conemaugh Health System provides more than $34 million in uncompensated care each year, including $2 million in charity care. “These really are challenging times; however, we are confident in our continued ability to provide outstanding health care to our region,” Tucker said. “This current national economic challenge does not change our commitment to continue to grow and excel.” In the past, hospitals have relied on income from investments to offset declines in patient revenue. But the association’s report showed 83 percent of Pennsylvania hospitals have seen investment income decline. BY RANDY GRIFFITH Source: http://www.tribune-democrat.com/local/local_story_020234123.html?keyword=topstory » Post Comment
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