MURRAY, Ky. (3/13/13) – Murray-Calloway County Hospital (MCCH), a not-for-profit hospital and the second largest employer in Calloway County, announced they have to let people go.
 
MCCH eliminated 28 jobs and are implementing other cost-cutting measures. Employee eliminations have occurred throughout all levels of the hospital and across various departments reducing 23 full-time and 5 part-time positions. Patient care areas of the hospital were minimally impacted. The layoffs represent a reduction of 2.8% of total staff and will leave the hospital with approximately 1,000 employees.
 
“We deeply regret the pain and anguish this difficult decision will cause for so many of our co-workers, but sustaining the fiscal health of MCCH so it can and will continue to ensure quality health care for Calloway County and our surrounding region is our ultimate responsibility,” said Murray-Calloway County Hospital CEO Jerry Penner. “Everything has been carefully planned and there will be no impact to the quality of care --- we focused on eliminating overhead and ensured that nursing staff ratios remain the same so that patients will continue to receive the great care of which they have become accustomed at our hospital.”
 
Murray-Calloway County Hospital is $7.5 million below budgeted numbers for inpatient volume since the fiscal year begin October 1, 2012. The hospital expects to receive even less in Medicaid reimbursement this year than last, and is still waiting to receive approximately $3 million owed from the state Medicaid program. Reimbursement cuts are expected to grow annually under the federal Affordable Care Act of 2011. Also, as a result of budget sequestration implemented by Congress, MCCH is expected to receive a 2% Medicare cut resulting in an additional $700,000 loss. The layoffs are necessary because the hospital is continuing to see lower volumes, a drop in revenue, and at the same time, less in reimbursements from Medicare and Medicaid, as well as other insurers.
 
“We are responding to the turbulent healthcare environment and are taking the appropriate fiscal actions necessary to adjust to declining volumes and reimbursements,” said Jerry Penner, CEO of Murray-Calloway County Hospital. “Departments have done their best to contain costs and productivity, however its’ simply just not enough. Hospitals are having to do more, and with less money to be in compliance with new regulations set forth in the Affordable Care Act. The healthcare environment is extremely uncertain but we will continue to strive to do our best as always.”
 
"Healthcare reform mandates and changes in reimbursement structures for Medicare and Medicaid are forcing healthcare organizations throughout the U.S. to confront new challenges," said Vicki Parks, CFO of MCCH. "We must find better ways to deliver enhanced value to patients and lower the overall cost of care."
 
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