Bend, Ore.-based St. Charles Health System said it needs to cut $6 million from its $749 million budget by the end of 2017, according to a KTVZ report.
The system's CFO, Jenn Welander, told the TV station cuts are necessary to improve the system's finances. St. Charles attributed its financial difficulties to growing supply and pharmaceutical expenses as well as decreased reimbursement for services rendered and legislative changes at the state level.
"All of those efforts, along with our supply initiatives — we are just intensifying our focus on that, in order to hit the targets that we have set," Ms. Welander told KTVZ.
The four-hospital St. Charles said it is trying to cut costs through a voluntary buyout program for employees, and is also offering workers incentives for presenting ideas that save money or generate additional revenue, according to the report.
Ms. Welander told KTVZ layoffs are also possible, although officials hope to avoid that. In the meantime, St. Charles said it is looking at open positions and assessing the system's workforce needs, the report states. Ms. Welander noted to the TV station St. Charles is also still planning a three-story $66 million patient tower project, although the project has been scaled back from initial plans.