Mercy announces cost containment measures, including staff reductions and service changes
Mercy Health System of Kansas, Inc., on Wednesday announced cost containment measures that include staff reductions and modifications to services in an effort to conserve resources and continue the provision of quality healthcare to its communities.
Mercy chief executive officer John Woodrich explained that the organization, like many others in the area, has been adversely affected by the continued downward spiral of the nation’s economy over the past several months. He cited under-utilization of services, increased obligations to provide charity care and rising bad debt in unpaid patient accounts as the factors in the staff reductions.
“We have been good stewards of our resources for many years, so today we remain a financially sound organization,” Woodrich said. “However, there is no end in sight to our country’s economic crisis, and the impact appears to be widening and escalating. For that reason, we had to take action immediately.”
Measures implemented today included the elimination of 56 positions across the Kansas organization, which operates hospitals in both Independence and Fort Scott. Twelve of those positions were currently vacant, leaving a total of 44 co-workers potentially affected by the layoff, including 30 in Fort Scott and 14 in Independence.
Part of the reduction involves the elimination of paid positions to operate Mercy Health Center’s courtesy transportation service in Fort Scott. Mercy also announced the pending closing of its rural health clinic located in Arma. The clinic’s last day of operation will be Feb. 6. Mercy Health Center in Fort Scott will also discontinue weekend cafeteria service.
Another change announced today involves the provision of physician services for the emergency rooms at both hospitals. MHSK has contracted with Acute Care, Inc., of Des Moines, Iowa, to provide ER physician staffing in both locations. The part-time coverage started at Mercy Health Center in Fort Scott last week and will begin in Independence on April 7. Local emergency room physicians already practicing with Mercy will have the opportunity to apply for employment with Acute Care, Woodrich explained, and the emergency rooms will continue to be staffed with a provider 24 hours a day, seven days a week.
All co-workers affected by today’s layoff will receive comprehensive severance packages and any requested assistance with job seeking, Woodrich said.
Mercy Health Systems of Kansas is part of the Sisters of Mercy Health System based in St. Louis, which also owns and operates multiple hospitals and outreach ministries in Oklahoma, Arkansas, Missouri, Texas, Louisiana and Mississippi. Woodrich explained that all hospital units within the Mercy system are experiencing negative economic trends at this time, as are most hospitals in the nation.
“We’re certainly not alone in this struggle, and we’ve seen even larger scale reductions by hospitals in our area in recent months,” he noted. “But a layoff is not an easy thing to do. Every co-worker is a valued member and asset to our healthcare ministry.
“We do want the community to know that we remain committed to providing uncompromised, high-quality healthcare to our citizens, just as we have for 130 years in southeast Kansas, and we look forward to future opportunities for growth.”