The tough economic times has claimed more victims.
Mercy Health Systems of Kansas announced Wednesday that it will implement cost-containment measures, including staff reductions and service modifications, as a result of the adverse affects the organization has felt during the nation's economic crisis.
Citing under-utilization of services, increased obligations to provide charity care and rising debt in unpaid patient accounts, CEO John Woodrich said MHSK has been significantly affected by the current recession.
"We have been good stewards of our resources for many years, so today we remain a financially sound organization," he 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 taken include the elimination of 56 positions across the Kansas organization, which operates hospitals in Fort Scott and Independence. Of those eliminated positions, 12 were already vacant, 30 jobs will be eliminated from Fort Scott and 14 will be eliminated from the Independence site.
Also being eliminated is the paid positions to operate Mercy Health Center's courtesy transportation service in Fort Scott. The service, which offers free transportation for Fort Scott residents to and from hospital and physician visits, will transition to a volunteer-based program
Also closing is Mercy's rural health clinic in Arma. The last day of operation for the clinic will be Feb. 6. Arma City Administrator Tim Schook said he was "shocked" by the announcement. He said the clinic has played an important role in the city, as it allows Arma area residents, particularly elderly residents, to receive health care without having to travel to Pittsburg, Girard or Fort Scott.
Mercy Health Center in Fort Scott also will discontinue weekend cafeteria service.
Woodrich said Mercy has submitted a new reimbursement proposal to the Bourbon County Commission for continued operation of the county's emergency medical service. After conducting a financial analysis, MHSK determined that fees and reimbursement are no longer covering the costs involved with operating the ambulance service, thus the need for additional reimbursement.
The new proposal allows the Bourbon County commissioners time to consider the proposal, according to a Mercy news release. If an agreement is reached, Mercy will continue to operate the ambulance service and will retain 14 workers not included in the 44 eliminated positions. If no agreement is reached, the proposal calls for Bourbon County to assume operation of the ambulance service on July 6.
Also affected by Mercy's latest measures are the provisions of physician services for the emergency rooms at both hospitals MHSK has contracted with Acute Care, Inc., of Des Moines, Iowa, to provide emergency room 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 chance to apply for employment with Acute Care, Woodrich said, and the emergency rooms will continue to be staffed with a provider 24 hours a day, seven days a week.
Woodrich said all hospital units within the Mercy system are experiencing negative economic trends. MHSK is part of the Sisters of Mercy Health System based in St. Louis, Mo., which also owns and operates multiple hospitals and outreach ministries in Oklahoma, Arkansas, Missouri, Texas, Louisiana and Mississippi.
"We're certainly not alone in this struggle and we've seen even larger scale reductions by hospitals in our area in recent months," Woodrich said. "But a layoff is not an easy thing to do. Every co-worker is a valued member and asset to our health care ministry."
All workers affected by the recent layoffs will receive comprehensive severance packages and any requested assistance during their job search, Woodrich said.
PITTSBURG —
