Lawrence & Memorial Hospital in New London, Conn., has laid off 14 full-time and eight part-time employees, according to a Westerly Sun report.
According to Lawrence & Memorial spokesman Michael O'Farrell, the reduction in workforce is part of a plan to close a $3.2 million budget gap in the current fiscal year, which started Oct. 1.
Of the 22 positions, eight are considered clinical and 14 are considered non-clinical. Employees in the eliminated positions will receive severance packages. According to the report, a variety of factors led to the budget shortfall, including inpatient volumes, Medicare cuts, drug shortages, investments in information technology and the rising cost of employee benefits.
Lawrence & Memorial's bid to purchase The Westerly (R.I.) Hospital is still pending as it requires approval from the Rhode Island Department of Health and the Rhode Island Office of the Attorney General. According to the report, the layoffs will not affect this deal.
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According to Lawrence & Memorial spokesman Michael O'Farrell, the reduction in workforce is part of a plan to close a $3.2 million budget gap in the current fiscal year, which started Oct. 1.
Of the 22 positions, eight are considered clinical and 14 are considered non-clinical. Employees in the eliminated positions will receive severance packages. According to the report, a variety of factors led to the budget shortfall, including inpatient volumes, Medicare cuts, drug shortages, investments in information technology and the rising cost of employee benefits.
Lawrence & Memorial's bid to purchase The Westerly (R.I.) Hospital is still pending as it requires approval from the Rhode Island Department of Health and the Rhode Island Office of the Attorney General. According to the report, the layoffs will not affect this deal.
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