We just received a press release from United Memorial Medical Center stating that 14 employees were laid off in Januray, and previously 16 vacant positions were eliminated, in response to the economic downturn.
For the past three months, United Memorial has been working to take pro-active steps in positioning the organization to effectively cope with the impact of reduced reimbursements from governmental payers and the effects of the declining stock market. To remain financially viable and protect the high level of service provided to our patients, we have applied organizational changes.
United Memorial began implementing several cost saving strategies in January which included limiting expenses unrelated to patient care, restricting the travel and education budgets and re-evaluating projects and capital purchases. All contracts for supplies, utilities and services were re-examined for cost savings. The Cardiac Rehab program was altered to increase class size and allow fewer days of operation. The Process Improvement Department was restructured under Quality Management and the employee shuttle service was outsourced.
As a part of this process, 16 vacant open positions with the equivalent hours of 12 full time employees were eliminated and since January, 14 employees were let go. While the 14 individuals affected by this action account for less than 2% of our 770 person workforce, they were our colleagues, co-workers and friends. Each possessed admirable work ethics and they have collectively provided the Hospital with decades of respected service. Those that were eligible were offered severance packages and where appropriate, options to extend their healthcare coverage.
The eliminated positions include three in management and 27 support staff.
The Surgical Expansion and Affordable Senior Housing Projects will continue as planned. The Hospital leadership team has worked conscientiously to make decisions that will allow United Memorial to continue to grow and provide quality services that meet the healthcare needs of our community.
