All departments of Allentown, Pa.-based LeHigh Valley Health Network have been asked to reduce budgets as the system prepares for changes that "will affect other parts of the organization," reads a letter sent to employees, according to The Morning Call.
The budget reductions come as LVHN prepares to close five medical offices that operate within the Lehigh Valley Physician Group, which is one of the largest in the nation, according to the report.
The following offices will close, according to The Morning Call.
- ExpressCare at the Health Center (East Allen Township, Pa.)
- Careworks Allentown
- LVPG Family Medicine Forks Township (Pa.)
- LVPG Family Medicine Moorestown (Moore Township, Pa.)
- LVPG Plastic and Reconstructive Surgery-Muhlenberg (Bethlehem, Pa.)
The letter said the budget reductions and decision to streamline physician practices is a result of a decline in patient admissions and inpatient acute surgical admissions, as well as declining reimbursement from Medicare and Medicaid, according to the report. The network reported a shortfall of $267 million for Medicare and medical assistance in fiscal year 2015, according to report.
Yet, The Morning Call notes, LVHN still posted revenue of $1.9 billion for fiscal year 2015, a 13 percent increase over the prior year.
More articles on finance:
Physicians Realty Trust posts $152.8M in Q4 investments
Nebraska lawmakers reveal Medicaid plan
UAB Health System CEO responds to Alabama's request for $157M boost in Medicaid funding