22 positions cut at Lawrence & Memorial Hospital

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NEW LONDON, CT (WFSB) -

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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