Washington Regional Medical Center eliminated 27 positions in response to reduced reimbursements caused by health care reform, hospital administrators said.
"In the post-reform health care environment, things are obviously changing," Bill Bradley, Washington Regional president and chief executive officer, said in a news release. "It requires the most disciplined, prudent management we have implemented, but also regrettably necessitates actions such as this."
Terry Fox, Washington Regional spokeswoman, said impacted employees could transfer to open positions they qualify for within the system and she estimated 15 to 20 people would lose their jobs. She said the cuts are various positions within the hospital but patient care would not be affected.
Fox said the last time Washington Regional had layoffs was in 2003. That round of layoffs cut 43 non-health care-related employees.
The Fayetteville hospital's annual revenue declined $8.75 million each of the past two years, according to the release.
Bradley wrote in a letter to employees in December that Washington Regional had implemented an expense reduction plan that would save the hospital about $25 million over the next five years. The plan included deferring or eliminating some capital expenditures, a pay freeze for directors, a pay cut for the executive team and a salary freeze for all employees.
"As we continue to look to the future it appears increasingly likely that our current plan may not be enough to financially sustain us through health care reform. If that becomes the case, further measures will be required," he wrote in December.
Washington Regional is not the only local hospital system to reduce staff.
The Sisters of Mercy Health System announced last month it was laying off up to 300 people across four states, mostly in support positions.
Jessica Eldred, Mercy Northwest Arkansas spokeswoman, said five positions were cut locally and one person transferred to another position.
NW News on 07/01/2014