Claxton-Hepburn Reduces Workforce
Facing what it says are declining revenues from Medicare reimbursements, an Ogdensburg hospital is cutting staff to cut costs.
Claxton-Hepburn Medical Center said it laid off eight people Monday.
Officials say the hospital will receive $450,000 less in Medicare reimbursements in 2012 than last year.
They predict the number will increase to $806,000 in 2013.
Under the federal Affordable Health Care Act, Officials say hospitals nationwide will see their reimbursements cut yearly through 2019
"These economic pressures require Claxton-Hepburn to implement a plan in which eight employees will be directly affected by a reduction in force," said hospital president Mark Webster.
Claxton Hepburn employs 850 people and has an annual operating budget of $91 million.
Kelley Tiernan, the hospital's chief financial officer, said revenues have only grown 1 percent so far this year while expenses have gone up 4 percent.
"We can attribute our current financial challenges to a variety of factors, including the loss of revenue from a busy gastroenterologist, an increase in employee prescription costs by approximately $96,000, and employee annual wage increases," Tiernan said.
Officials say the reduction in workforce will not hurt the quality of care the hospital offers.
Wednesday, June 19, 2013, Watertown, NY
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