Southwest Memorial Hospital in Cortez, Colo., laid off 40 employees amid financial struggles partially attributed to overstaffing, according to The Journal.
The layoffs, which represent a 9.5 percent staff reduction, took place Aug. 14.
Tony Sudduth, interim CEO of the hospital's operator, Cortez-based Southwest Health System, said in a news release obtained by The Journal that SHS board members saw the move as a necessary step.
"We do not take this lightly. Our employees are the heart and soul of our hospital, and this was a tough decision," Mr. Sudduth said. "These organizational changes are unfortunately necessary in order to improve productivity and create greater efficiency in how we provide care to our community. Our board is confident that we will be better positioned to serve our hospital and its path to financial health for years to come."
The layoffs primarily affect nonclinical administrative and support roles. Affected employees may reapply if jobs reopen, the report states.
Mr. Sudduth partially attributed the workforce reduction to overstaffing issues. He said a recent review showed staffing levels at the hospital exceeded productivity standards and best practices when compared with numerous critical access hospitals or similar hospitals in Colorado.
The hospital also recently conducted a Medicaid rebilling effort of 11,000 claims to try to increase revenue, but results were not what officials expected, according to the report.
Moving forward, the hospital plans to focus on areas such as revenue cycle, charge capture and materials management to turn around its finances.
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