Crozer-Keystone Health System became one of the latest hospital operators to announce job cuts. The two-hospital system based in Springfield, Pa., will eliminate 400 positions, though its unclear how many employees will be laid off, said Crozer-Keystone spokeswoman Kathy Scullin.
Employees in jobs affected by the cuts will be offered vacant positions, when qualified, or retraining, Scullin said. The worsening recession and rising unemployment have increased Crozer-Keystone's bad debt from patients who dont pay their bills, she said. Also contributing to the systems financial stress are cuts to state reimbursement and fewer patients. The systems weaker cash flow from operations in fiscal 2007 and 2008 and a drop in its liquidity prompted Moodys Investors Service to downgrade the system to Baa3 in November from Baa2.
Crozer-Keystone said other cost-cutting measures include wage adjustments; decreased capacity to meet lower volume; and consolidation of its hospice and home-care services. Unions will be asked to accept wage adjustments, Scullin said. The system has also cut or left vacant three executive-level positions.