UTICA — St. Elizabeth Medical Center in Utica today announced it has laid off 10 employees and will eliminate about 40 vacant positions as the hospital continues to adjust to decreased state Medicaid reimbursements.
The staff reductions are intended to “ensure the hospital’s long-term sustainability,” St. Elizabeth Medical Center said in a news release.
The employees worked in all areas of the hospital and ranged from executive leadership to administrative to those with direct-care responsibilities, the hospital said.
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St. Elizabeth Medical Center will offer those affected by the “restructuring” the opportunity to apply for any vacant position for which they qualify.
The hospital said it employed 1,951 before the reduction.
In addition, St. Elizabeth Medical Center also closed one medical/surgical unit, 2D, on Monday following a “prolonged decrease” in hospital inpatients, the hospital said.
These are “extremely difficult” decisions in “challenging” economic times, Richard Ketcham, president and CEO of St. Elizabeth Medical Center, said in a news release.
“We have a responsibility and an obligation to the community we serve, the medical center and its board of trustees to ensure the long-term fiscal health of the organization, while continuing to meet our mission. This further demonstrates the importance of success in our affiliation plans with Faxton St. Luke’s Healthcare, which we are still pursuing diligently,” Ketcham said.
St. Elizabeth is citing the decreased reimbursement from the New York state Medicaid program over several years as a contributing factor to the staff reduction at the hospital.
The medical center has dealt with more than $11 million in state Medicaid cuts in the past three years, St. Elizabeth said.
Reimbursements have not kept pace with the high cost of care, St. Elizabeth contends.
New York’s ongoing budget “crisis” presents “immense” financial challenges to patient-care providers, who continue to receive cuts to their payments, the hospital said.
“We will continue to work with our elected officials on achieving Medicaid reform that includes the redesign of the Medicaid system,” Ketcham said.
Contact Reinhardt at ereinhardt@cnybj.com
