Alice Peck Day Memorial Hospital in Lebanon, N.H., closed its patient accounts department, resulting in 17 layoffs, according to a Valley News report.
The news comes as the hospital is outsourcing patient accounts to Greenbelt, Md.-based The Chappelle Group Corp. The hospital has been working with the revenue cycle management firm regarding RCM improvement.
APDMH said in a news release the hospital has experienced "significant" revenue cycle improvement, including with monthly cash collections, since working with The Chappelle Group and decided to transfer patient accounts entirely to the firm, effective Sept. 6. Therefore, patient accounts staff will no longer be employed by the hospital.
“I believe this is the right decision for APD[MH] because it ensures our finances remain strong and viable,” said Sue Mooney, MD, hospital president and CEO. "While we are sorry to lose these colleagues, we also know this initiative has improved our ability to make timely payments to vendors, some of whom are located in the Upper Valley."
She added, "Our patients will also benefit from this change. Patients deserve to get information in a timely fashion regarding their bill and this change will improve their satisfaction with this process at" the hospital.
Hospital officials said APDMH is offering each affected employee two weeks of paid notice and severance based on their time with the hospital. They added APDMH also plans to help affected employees find other employment opportunities, including jobs at the hospital, and The Chappelle Group has indicated that they will interview some affected employees for possible opportunities with the firm.
APDMH spokesperson Peter Glenshaw told Valley News via email the hospital does not expect any savings or additional costs as a result of the layoffs.