Providence eliminates 30 positions - March 7, 2003

Mail Tribune (Medford, OR — Wayback)

2004-09-12

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61 °F Forecast | Road Cams Sunday, September 12, 2004   Today's News | Classifieds | Autos | Homes | Jobs | Tempo | Health | Community | Home Delivery   SECTIONS Home Page Local News Sports Business Obituaries   Life   Opinion - Politics   Tempo   AP News   Weather   Classified   Archives   Site Map   SPECIAL SECTIONS   Since We Asked   Outdoor Journal   Prime Times   Wellness Connection   Readers' Choice   Real Estate Showcase   Joy Magazine   Homelife Magazine   Wedding Guide   Rogue Valley's Finest   EXTRA   Newspaper in Education   Personals   Movie Times   TV Times   E The People   MARKETPLACE Find a Car Find a Home Find a Job Classifieds Place an ad  eSouthernOregon Automotive Communities   Entertainment   Publications   Recreation   Calendar   CUSTOMER SERVICE Frequent Questions Advertising Information Home Delivery Employment Contact Us Media Kit   Network Affiliate Oregon Road Conditions & Cams Email Story to a Friend March 7, 2003 Providence eliminates 30 positions By BILL KETTLER Mail Tribune Faced with rising costs and shrinking income, Providence Medford Medical Center has eliminated 30 jobs. Low reimbursements for patients on Medicare and Medicaid and a growing demand for indigent care forced the hospital to reduce staff to cut expenses, said Chuck Wright, Providence Medford chief executive officer. "What we’re doing is the same thing almost every hospital on the West Coast and across the nation is doing," Wright said. The hospital eliminated eight nursing positions (including six registered nurses), five technical positions in the hospital’s physical plant and supply department, eight clerical positions and two managers in the rehabilitation department. Wright declined Thursday to identify the departments in which the nursing positions were eliminated. Providence spokeswoman Deborah Elliott said the staff reductions and other changes will save the hospital $2.8 million this year and $6 million in 2004. Staff retraining costs and severance compensation during 2003 will substantially reduce the savings this year. Elliott said the hospital has to write off a substantial part of its total costs for patients enrolled in state and federal health insurance programs. The federal government, for example, reimburses the hospital for Medicare patients at the rate of 83 cents for each dollar of service. Medicaid, the state-and-federal health insurance for low-income people, pays just 43 cents on the dollar. Elliott said the hospital expects to write off $66 million in unreimbursed expenses for Medicare patients in 2003, a 22 percent increase over 2002. Unreimbursed Medicaid costs are expected to increase 20 percent, to $16 million in 2003. The hospital’s cost for "indigent care" (people who have no insurance and no money to pay their bills) is also expected to rise. Elliott said Providence expects indigent care costs will mount to $4.5 million in 2003, an increase of about 21 percent over 2002. "The only way Providence can provide service for free is if our bottom line is healthy," she said. "The only way to keep the bottom line healthy is to operate as efficiently as possible." Wright said the hospital remains in good financial condition. Income exceeded expenses by $5.2 million during 2002. Elliott said workers whose jobs were eliminated will be encouraged to apply for other jobs at Providence Medford or other hospitals in the Providence Health System, which includes hospitals in Oregon, Washington, Alaska and California. Workers also will be eligible for retraining programs. Providence Medford had 52 job openings on Thursday, including 20 jobs for registered nurses. "Those eight nurses who had their positions eliminated will have a lot of opportunities to transfer into other registered nurse positions," Elliott said. Providence employs about 250 registered nurses who give patient care, and about 1,050 people in a range of full-time, part-time and on-call jobs. Wright said Providence made the cuts after comparing staffing levels with hospitals of similar size across the United States. "We had some departments in the hospital that didn’t compare well against like departments in terms of staffing levels," he said. Reach reporter Bill Kettler at 776-4492, or e-mail [email protected] Mail Tribune Home Local News  | Sports  | Business  | Obituaries  | Life Opinion - Politics | AP News | Archives  |  Site Map   E Southern Oregon  | Classified   Copyright © 1997-2004 Mail Tribune. All rights reserved. Privacy Policy | Terms & Conditions Website Feedback   ADVERTISERS A D V E R T I S E R S SPECIAL SECTIONS Auto Finder Job Finder Home Finder Joy Magazine Homelife Magazine Tempo Readers' Choice Real Estate Showcase Since We Asked Outdoor Journal Moving to Southern Oregon? Volunteer Opportunities