JSMC Announces Elimination Of 70 Jobs
After finishing the second quarter of 2014 with a loss, officials at Jennie Stuart Medical Center are taking cost cutting measures at the facility, including a reduction in staffing. According to a release sent out late Wednesday afternoon, in addition to the elimination of 70 jobs across the board, Jennie Stuart will take the actions of managing monthly operating expenses, tightening travel and marketing budgets, reducing supply costs and renegotiating contracts with vendors.
Officials state that the job reductions will come through a combination of employees participating in an accelerated retirement program and layoffs. While noting the difficulty of eliminating jobs, officials at Jennie Stuart say they believe these job eliminations, in conjunction with other focused cost reductions, will provide the ability for JSMC to adjust its cost structure, and become a more efficient, quality driven, competitive healthcare provider for the patients in their regional marketplace moving forward.
Hospital officials attribute the need for the reductions to significant regulatory and reimbursement challenges, federal sequester cuts, declining Medicare reimbursement, an increasingly complex and restrictive Medicaid system, and a commercial insurance marketplace that is placing more of the burden of cost on consumers. Officials go on to add that JSMC’s organizational fundamentals are strong, and reflect the hard work of employees, and that the financial position is solid.