Highlands Medical Center in Scottsboro, Ala., laid off 26 employees this week, The Daily Sentinel reports.
The layoffs are due, in part, to less Medicare reimbursement and reduced patient volume, according to hospital CEO Lonnie Albin, MD.
"Health systems have been hit with reductions in Medicare reimbursement rates as well as the sequester cuts of the Budget Control Act of 2011 and Affordable Care Act," he said, according to the report. "The cost of providing healthcare has risen drastically in recent years. We are receiving reduced payments from Medicare for the care we provide, while at the same time we are treating an increasing number of uninsured and underinsured patients."
Dr. Albin added the cuts are necessary "to continue to provide care for patients in Jackson County, maintain and improve hospital facilities, stay on track with the latest healthcare technologies and sustain compliance and regulatory requirements."
In addition to the layoffs, Highlands Medical Center does not plan to fill six vacant positions, according to The Daily Sentinel.