Jewish Hospital & St. Mary’s HealthCare, Louisville, Ky., said it is eliminating 500 full-time-equivalent positions out of a workforce of 8,100 full-time equivalents, a 6% reduction that includes 250 layoffs. The system’s hospitals and other facilities have experienced a volume decline of 3% to 7% since the start of the year, depending on the volume measure used, said Janice James, the system’s transition CEO and a managing director at Wellspring Partners, which is part of Huron Consulting Group. The declines are across the board and appear to be related to the weak economy rather than a loss of market share, James said. “Physicians that I’m talking to say their office activity is down, too,” she said. “It’s not isolated to us.”
Jewish & St. Mary's eliminating 500 positions
The system implemented $55 million in other cost reductions in 2009 by changing supplier assignments, revamping benefits and making process improvements, said James, who is leading the system while it searches for a replacement for Bob Shircliff, who announced his retirement last year.
The system posted an operating loss of $6.6 million in 2009 compared with a $2 million operating gain in 2008, on operating revenue of $1.01 billion, up 5% from 2008, according to its unaudited 2009 financial statement. Overall, thanks to a rebound in its investment earnings from a $70.6 million loss in 2008 to a $15 million gain in 2009, the system recorded net income of nearly $8 million, compared with a loss of $78.7 million in 2008, according to the financial statement. The cost of uncompensated care, including both charity care and bad-debt expense, increased from $52 million in 2008 to $68 million in 2009, according to the system’s layoff announcement.
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