Press Release Archive

Press Release Archive

Harrison Medical Center announces staff reductions - 4/2/2009

Harrison Medical Center President & CEO Scott Bosch announced that the organization would eliminate leadership and staff positions across all areas over the next six to eight weeks.At this time we don’t have a final number,” says Bosch, “but we’re phasing our approach to assure that patient services will remain unaffected."

Bosch started at the executive level by eliminating three positions: one vice president and two executive assistant positions. Two leadership positions were also cut this week.

The organization will also freeze all executive, director, and manager salaries for next fiscal year, representing a savings of more than $350,000.

The decision to trim the organization is being fueled by five key external and internal forces:

  1. A loss of $3 million in state Medicaid funding;
  2. A $7 million cost to fund the organization’s Defined Benefit Pension program based on loss of investment funds. Health insurance premium costs have risen.
  3. An increase in Harrison’s charity care and “bad debt,” which means the organization is paid less to provide the same care.
  4. While we projected an increase in patient volumes this year, Harrison has experienced a decrease in nearly all patient care services.
  5. And finally, efficiency. The results of a recent benchmarking study reveal that Harrison is less efficient in nearly every area of the organization than our like-sized peers—without quantifiably better results to show for it. “Our quality of care is tremendous,” said Bosch, “but we use more resources to produce the same results as like-sized hospitals that also have great quality.”

The economic crisis plays a role, but, nonetheless, we must change explains Bosch. “We must adjust our costs accordingly to continue to produce an adequate operating margin. This will enable us to continue to provide needed capital for equipment and facilities, as well as funds for future operations, services enhancements, and investments in our staff.”

The most painful part of all this is the human cost, Bosch says. “We’re affecting people, and I care deeply about each one. I promise that those who leave will be treated equitably.”