HealthAlliance Hospital lays off 4
HealthAlliance Hospital of Leominster has laid off four employees, and executives are evaluating the need to cut for more, according to Interim President Michael Cofone.
The cuts involved four positions in the hospital’s information technology department, Cofone said. He added that in addition to layoffs, the hospital is looking for efficiencies “in all areas.”
According to Cofone, hospital revenue is down about four percent compared to last year. That’s been driven largely by changes in Medicare regulations that require doctors to testify that patients will be in the hospital at least two nights under “observation” before they can be admitted.
Cofone said this has resulted in more patients being treated under “observation status,” which results in lower federal reimbursements. For the first time in a number of years, HealthAlliance is also experiencing negative profit margins, according to Cofone.
“We’re trying to keep up…with lower payment rates. We are trying to stay with it so we don’t slip into larger losses,” Cofone said.
Cofone said hospitals across the country have faced revenue declines due to the Medicare change, which was implemented in 2013. And officials at UMass Memorial Health Care, which owns HealthAlliance, have cited similar challenges as it has cut services and laid off hundreds of employees over the last year to shore up operating losses.
HealthAlliance employs 1,300 people, or 905 full-time equivalents.
(Image credit: freedigitalphotos.net)
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