HGB announces structural changes in new fiscal year

Hayes Green Beach Memorial Hospital has announced structural changes, including a reduction in workforce, to better position itself to be successful in the challenging economic environment created by health care reform.

Like many health care organizations, HGB’s recent financial results were less than anticipated due to lower volumes and continuing declines in reimbursements. In response, the hospital has implemented a financial improvement plan with a balanced approach that includes investing, divesting and redeploying resources in the best interest of its patients.

One part of the overall plan includes a 6 percent reduction in workforce that impacts approximately 25 positions across the organization. The affected employees were notified Thursday, April 17. Additionally the hospital will consolidate services and reorganize administrative responsibilities. HGB will also continue to invest in programs, services and technology, as well as in a gain sharing program for employees to reward financial improvement.

“Based on last year’s financial performance and the challenges we will continue to face in this era of health care reform, we knew it was critical to carefully examine how we will do business going forward,” said Matt Rush, FACHE, president and CEO. “HGB remains financially strong, but we had to better position ourselves for long-term success. We have been able to avoid reducing staff up until now, but it became necessary to better align staffing with volumes. This is by far the most difficult part of this process because we are losing valued members of our team.”

Like other regional hospitals, HGB has experienced declines in hospital admissions, emergency visits and outpatient registrations in the last fiscal year, but still remains in a strong financial position with significant cash reserves to continue supporting operations and investments. The changes in workforce and implementation of hospital-wide cost reduction programs are expected to result in up to a $2 million improvement between April 1, 2014, and March 31, 2015.

Hayes Green Beach Memorial Hospital has been the community’s choice for health care for more than 80 years. HGB is committed to working together in health to provide quality care and enhance the vitality of the community.