This year so far, patient numbers in Mammoth Hospital remain 15% lower than last year. Other services have suffered too. While Mammoth Hospital has achieved new financial goals, money problems have brought on a reduction in the management team and elimination of other positions.
Hospital CEO Gary Boyd sent out a new release on plans for restructuring. He says that for the past several months officials have analyzed expenses to see what changes need to be made to adjust to reduced patient volumes. He points to salaries and employee benefits as the largest expense.
Boyd said Mammoth Hospital has made some very difficult decisions and determined a reduction in staff costs could not be avoided. Boyd points out that staff reductions were made last summer by way of voluntary separations of workers. To address a lack of patients and economic times, Boyd said Mammoth Hospital will implement an organizational restructuring plan which includes reducing the management team by nine positions and eliminating a total of 14 positions in the organization. Asked about specific positions, Communications Director Lori Ciccarelli said, “One of our administration positions and two of our supervisory positions have been eliminated. Some of our supervisors positions have been converted to staff positions, and various positions in a variety of departments have been eliminated.” Ciccarelli also said, “No clinical positions involved in direct patient care were involved at this time.” Boyd did say All of the individuals affected by this restructuring have been good staff members, and their many years of combined service to the hospital are very much appreciated by us and the community.
Boyd said that in the current economic climate, we must address cost reductions to remain a viable organization. Mammoth Hospital will continue to review and evaluate cost saving measures on a regular basis in order to provide quality medical care on a cost efficient basis to our community.
Boyd also explained that a lack of patients is not unique to Mammoth Hospital. He said many hospitals across the country face the same issues due to the current economic conditions and reductions in reimbursements from third party payors such as insurance, MediCare and MediCal. On the positive side, Boyd said Mammoth Hospital is achieving its financial goals this year. He said, We have about 91 days cash in reserves today compared to about 45 days this time last year. Our goal, said Boyd, is 120 days.
The changes underway, according to Boyd, are in anticipation of a continuation of decreased reimbursement next year and to stay on target to meet our financial goals in the next fiscal year.