A hospital in Putnam has announced jobs and budget cuts as a result state budget funding reductions.
Day Kimball Healthcare on Thursday announced a series of cost-cutting measures meant to help offset reductions in state Medicaid.
“Once again, our organization has been dealt a severe financial blow from the state that has far-reaching repercussions,” said Robert Smanik, president and chief executive officer of Day Kimball. “We have no choice but to be proactive in cutting costs, and are doing so in a way that is measured, thoughtful, sensitive and focused on maintaining the delivery of high-quality care.”
Operating expenses were cut by about $7 million, according to hospital officials.
The adjustments include freezing wage increases for the current fiscal year and a reduction that’s the equivalent to 23 full-time positions.
The reductions include 9 vacant positions that will not be filled and 16 layoffs, 11 of which are administrative and operations positions.
“Since the state’s announcement a few weeks ago, we have diligently reviewed our operating expenses in anticipation of the need to make adjustments,” Smanik said. “We knew that our organization had to take control of its own destiny and not depend on assistance from others. These measures will allow us to stabilize Day Kimball financially while preserving as many jobs as possible so that we can ensure the continued delivery of high quality health care to northeast Connecticut.”
Gov. Dannel Malloy said the cuts to hospitals are fair, and he questions whether hospitals really need to lay people off.
According to his staff, hospital profits have been on the rise.
In 2010, more than $400 million in profits jumped to more than $700 million two years ago, and last year more than $900 million.
The governor's latest budget has slashed more than $63 million, and the Connecticut Hospital Association has gone as far as calling this a crisis.
Smanik said his hospital has not been making millions in profits. While the hospital is doing okay, they've had losses in their physician group.
Hospital officials said they will also explore selling some of their buildings in Plainfield.
Copyright 2015 WFSB (Meredith Corporation). All rights reserved.