Three-hospital system to cut in areas where patient intake has declined and increase is not expected
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September 24, 2009
More layoffs are expected at Beaumont Hospitals in the next several weeks, as the three-hospital system looks to trim staff in areas where patient business has declined and isn't likely to rebound.
The layoffs will be targeted to departments that have been most affected by the economic downturn and are losing patient volumes, such as some obstetrics or cardiology departments, said Colette Stimmell, Beaumont's director of public relations.
"We're looking at areas where volume has diminished and isn't likely to return," she said.
She expects workers to be informed of the job cuts in the next several weeks.
According to Oakland County records, Beaumont supported nearly 14,610 jobs in 2008.
Beaumont is still evaluating staffing levels and couldn't put an exact number on how many jobs they're looking to cut. Stimmell said the reduction will affect a variety of positions, ranging from workers who deal directly with patients to those who provide administrative or business support.
Last year was a financially rough year for Beaumont, which lost about $29.5 million on operations in 2008 and another $184.7 million on investments and other nonoperating income, putting the hospital system at a net loss of $214.1 million for the year.
The system cut about 500 positions last fall to help reverse its losses and continued to make smaller staffing adjustments in early 2009.
It also put on hold construction on several outpatient centers and a $159 million high-tech cancer therapy center. As of June 30, the health system was back in the black in its core medical business and on track to make money by year's end.
But Stimmell said the system's revenues have continued to lag because more patients are delaying care or losing their health insurance to job cuts.
"We've come a long way since last year, but on the revenue side we're not where we need to be," she said.
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