Orchard Hospital, a 45-bed facility located in Gridley, Calif., laid-off employees Oct. 27, according to the Taft Midway Driller.
This year Orchard Hospital faced a serious lack of funding due to an increase of unfavorable payers, a delay in the Hospital Fee Program, which provides $250,000 per month to the hospital, and the failed passage of special tax measure that would've provided additional funding.
To offset this lack of funding, the hospital implemented cost-cutting measures, including staff reductions to ensure the longevity of the hospital.
"[The layoffs were] the last choice we wanted to make at Orchard Hospital and it is not the only expense cuts we made; however, given the financial issues we are facing, staff reductions became necessary for the survival of our hospital and for the patients and communities we serve," Steve Stark, Orchard Hospital's CEO told Taft Midway Driller.
Orchard Hospital did not immediately respond to Becker's Hospital Review's request for more information.