22 positions cut at Lawrence & Memorial HospitalPosted: Updated:
Officials at Lawrence & Memorial Hospital in New London said Thursday the company will be cutting 22 jobs, with 14 of those positions being full time, to help close a $3.2 million gap in the current fiscal year budget.
In a statement from the hospital, Director of Public Relations Michael O'Farrell said "a variety of factors led to the current budget shortfall" including the following items:
- Softened inpatient volumes
- Medicare cuts
- Pressure from payors to cut costs
- Drug shortages
- Necessary investments in information technology
- Rising costs of employee benefits
With positions being cut, O'Farrell said the hospital started by eliminating vacant positions, natural attrition and other "operational cost-saving measures" as ways of reducing the shortfall.
No hospital services were cut and the hospital is planning to focus on bettering the following areas of service:
- Average length of stay
- Staff overtime
- Supplies (both medical and non-medical)
"Given the overall uncertainty of the health care environment, the hospital continues to work on improving overall cost management," the statement said.
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