Grays Harbor Community Hospital in Aberdeen, Wash., laid off 21 employees Friday due to subcontracting billing services.
The hospital said via news release it is subcontracting with Cottonwood Heights, Utah-based AVEC Health Solutions for billing services, effective Jan. 12. As a result, the hospital cut 21 positions.
The move aims to improve billing timing and accuracy, as well as cash flow.
"Hospital billing is a vital part of the financial success of an organization," Tom Jensen, CEO of Grays Harbor Community Hospital, said in a statement. "We find ourselves at the point where we need to bring in a more specialized service to effectively attend to our patients' billing concerns."
He said other rural hospitals have also brought in outside professionals for billing services due to the intensive labor involved, and the hospital's move "is in the best interest of our patients."
According to the hospital, affected employees will be paid for the next nine weeks and will also receive tenure-based severance.
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