September 5th, 2008

Because of millions of dollars of financial loss each of the past 5 years, Sacred Heart Hospital has decided to try to stay open by cutting its operating costs– thereby cutting 5 percent of its staff.

The hospital laid off 76 of its 1,500 employees yesterday.  The cuts were made across several departments.

Part of the reason for Sacred Heart’s financial difficulties is that it is located in a poor community, where many of the patients are insured by Medicare and Medicaid– programs with low reimbursement rates.  The hospital hopes to save close to $6 million a year as a result of the job cuts.

For more details, visit the Morning Call.