Hennepin County Medical Center, the 431-bed publicly owned hospital in Minneapolis, is cutting 100 jobs though attrition and layoffs and freezing all capital projects not bound by contracts.
The spending cuts come in response to a $19 million funding cut from the state government in the past year. HCMC Public Relations Director Tom Haynes said the hospital was already dealing with the expected loss of $7 million through reductions in state-funded reimbursement rates for 2008-09 when Gov. Tim Pawlenty enacted an unallotment order Dec. 19 that cut the hospitals funding by another $12 million.
Roughly 80 of the jobs being cut are already vacant, and the remainder of the cuts will come from layoffs and reduced hours that will not affect direct patient care. The hospital is also stopping a planned expansion of its call center, scaling back training for a new electronic health records system, and delaying maintenance projects and equipment replacements.
Unlike many hospitals across the nation, HCMC saw a 9% rise in patient volume in 2008. Haynes said about 70% of the urban safety-net hospitals patients receive public insurance like Medicare and Medicaid.