Cuts in the most recent budget passed this year by the Connecticut legislature and signed by Malloy will amount to $18 million in two years for L+M, Cummings said. Other spending cuts are part of federal Medicare and Medicaid funding, the extension of Bush-era tax cuts and automatic federal cuts that took effect in March.
In addition, L+M says it and other hospitals are losing revenue with falling patient volume due to the weak economy, fewer employers offering health insurance and a shift to high deductiblehealth plans, forcing beneficiaries to reconsider hospital visits.
"Everything is different right now," O'Farrell said. "There's a sweeping change coming through and it's happening fast."
The hospital laid off 60 workers in the past year, about 2 percent of its 2,800 employees. Hours were reduced for 15 more employees.
The National Labor Relations Board is siding with AFT Connecticut, which represents the registered and licensed practical nurses seeking a new contract, over accusations that the hospital established different medical organizations, or "alter egos," to displace the work of union members. The union accused L+M of using the new medical groups to hire lower paid workers, replacing laid-off employees.
The Boston region of the NLRB determined that the hospital transferred work to other entities, spokesman John Cotter said. The federal agency said the "various entities" were a single business enterprise and a single employer as defined by federal labor law.
The hospital says it's confident its actions "have been entirely proper and lawful" and said the NLRB decision was not based on merits.
The matter heads to an administrative law judge. A hearing date has not been scheduled.
Matt O'Connor, spokesman for AFT, accused hospital officials of giving conflicting views of their financial position, depending on the situation. The hospital warned of Connecticut budget cuts but told Rhode Island health officials that the hospital's finances were strong enough for it to buy the Westerly Hospital, he said.
"They're talking out of multiple sides of their many mouths," O'Connor said.
Malloy wrote to Cummings on Thursday that he has "deep concerns" about the health care, employment and community service practices at Lawrence + Memorial and its related entities. He sided with the union on the issue of "alter egos," telling the CEO that that "appears to be a legal maneuver" to avoid pay and benefits required by the contract.
In response, Cummings said Malloy "refers to serious and complex issues that are better discussed in a non-political manner."
