Aberdeen, Wash.-based Grays Harbor Community Hospital laid off 24 percent of its leadership amid restructuring efforts to reach financial stability, according to a hospital news release.
Officials said Grays Harbor made the move following a concentrated evaluation with Navigant consulting firm. They expect to save an estimated $1.25 million.
The percentage includes executive-level positions that will remain vacant for the time being such as COO, CFO and cultural change leader. Grays Harbor noted all service lines will remain in place and all patient care departments will be fully operational.
Officials also made it clear the layoffs are not a result of poor work.
"It is imperative that we treat our employees, some of which have been with the organization for more than 30 years, with respect and dignity," the hospital's release reads. "We cannot overstate the fact that these layoffs are not a statement about work ethic or ability. This is the unfortunate result of low volumes and continued reimbursement reductions. Financial stability is imperative, staffing and benefits make up the largest part of our costs and need to be reduced."
Grays Harbor has struggled financially, partially due to declining patient volume. To improve its financial picture, the hospital subcontracted billing services in January, resulting in the layoff of 21 employees. The hospital also cut seven health information management jobs last fall. Additionally, Grays Harbor lost its COO and CFO in recent weeks amid concerns regarding the hospital's financial situation.
In addition to layoffs, the hospital has said its efforts include working with Navigant; a rural health clinic project go-live scheduled for April 16, 2018, which is designed to allow the hospital to receive cost-based reimbursement for primary care; and restructuring hospital debt and refinancing its $35 million loan with Key Bank.
More layoffs are also expected in the near future, according to The Daily World.
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