Jewish Hospital & St. Mary's HealthCare Cutting 500 Jobs – Food and Environmental Services to be Contracted Out
Posted Mar 12 2010 10:04am
Outsourcing is what is happening here with many of the employees having a new boss, and reason is to save money. Over 50% of the US hospitals are now operating in the “red” and by shifting the cost over to a contract, benefits, health insurance, etc. are now going to a new source for the employee. Chances are the benefits are not going to be as good as what the hospital offered, common sense may dictate this opinion.
The CEO of the hospital sums it up pretty good, it’s about the economy and hospitals can only cut so far as they have fixed costs. Some hospitals around the country have been holding meetings, telling physicians that they “are not meeting quota”. This means admitting quota. Perhaps quota is not the best choice of words but that is what is being related to the doctors when the numbers show the hospital is not bringing in enough money to meet their bottom line costs. To raise more money, admitting “insured” patients and even Medicare patients is a way of generating revenue, even though doctors of course do not want to admit patients who do not need to be there as well, but some are being put on the “hot seat” as if the bottom line revenue goals to keep the doors open are not met, well the hospital can fade away as well. It’s really a very bad situation. If physicians admit patients who do not need to be there, the utilization departments will track this down as this is their job and the doctor could get fired when those algorithms are run later, so a big catch 22.
The doctor can feel pressured and perhaps admit borderline cases, but when the numbers are run later, he’s out the door at the hospital and he could also be replaced by other doctors who charge less, or perhaps I should say may be coerced into charging less. BD
LOUISVILLE, KY (WAVE) - Another major Louisville company is cutting jobs. On Wednesday, Jewish Hospital and St. Mary's HealthCare announced it would eliminate 500 of its more than 8,100 positions, about half through layoffs.
Interim CEO Janice James says it's "about as tough as you get in terms of management decisions."
James says about 250 employees now working for Jewish and St. Mary's won't have jobs at the end of the month.
"This isn't about the people's contributions individually," James said. "This is about a change in the economic reality that we live in."
The economy is finally hitting healthcare.
"Patients are deferring elective services," James explained. "A lot of the COBRA support that was there has come to an end for people who lost their jobs."
In addition, Jewish is contracting out its food and environmental services, meaning those employees will soon work for a new company.
"Those people will still be working here," James said. "They'll just be working in a different employment relationship."