Center City, Minn.-based Hazelden, an addiction treatment provider, cut 57 jobs this year as it adjusts to discounted payment rates from health insurers and faces difficulty generating revenue after switching to a new EHR, reports Star Tribune.
The lay offs account for roughly 4 percent of the total workforce at Hazelden, which has operations in Minnesota and eight other states. Its Minnesota location is cutting 40 of its jobs.
Hazeldon officials cited a transition from self-pay patients to those covered by health insurance, which happened faster than expected and resulted in significantly greater discounts.
"This more rapid shift placed extreme pressure on current year net revenue realization, prompting management to implement deep expense reductions," Hazelden said in its financial statement issued earlier this month, reported Star Tribune. "Such reductions will begin to positively impact operating results during [the fourth quarter] and thereafter."
Hazledon has also seen issues with its EHR and its bill payment feature. Specifically, the organization has been struggling to collect bills following the shift to the new system.