MURRAY, Ky. (AP) — Murray-Calloway County Hospital officials have cut 28 workers and say remaining employees will experience a one-time cut in salary.
Hospital CEO Jerry Penner told The Paducah Sun (http://bit.ly/Z1ORKJ) that the cuts will have a minimal effect on patient care areas and would not affect the quality of care that patients receive at the facility. He said the moves were necessary to keep the hospital running effectively.
The hospital notified employees on Tuesday that 28 jobs would be eliminated and the remaining workforce would see a cut of 5 percent in their paychecks at the end of March.
Penner said major factor contributing to the cuts included decreasing reimbursements from the state Medicaid program and a decline in the number of patients admitted to the hospital.
"It's just a shame that the fiscal environment outside of this hospital is causing this problem," Penner said. "We're just responding to this turbulent health-care environment, and we are taking the appropriate fiscal actions necessary to adjust to declining volumes and reimbursements."
Officials said the local hospital isn't the only one being affected by events outside its control.
"Healthcare reform mandates and changes in reimbursement structures for Medicare and Medicaid are forcing healthcare organizations throughout the U.S. to confront new challenges," stated Vicki Parks, hospital chief financial officer, said in a letter to employees. "We must find better ways to deliver enhanced value to patients and lower the overall cost of care."
Penner said no additional cuts are expected in the immediate future.
Information from: The Paducah Sun, http://www.paducahsun.com