Grays Harbor Community Hospital lays off quarter of leadership roles

Grays Harbor Community Hospital announced it laid off 24 percent of leadership roles last week. Additional layoffs are expected this week.

The layoffs are expected to bring an estimated savings of $1.25 million as the hospital attempts to achieve financial stability.

According to the press release:

“This percentage includes executive-level positions that will not be immediately replaced such as Chief Operating Officer, Chief Financial Officer and Cultural Change Leader. No service lines are being terminated and all patient care departments are still fully operational for the care of our community.

It is imperative that we treat our employees, some of which have been with the organization for more than 30 years, with respect and dignity. We cannot overstate the fact that these layoffs are not a statement about work ethic or ability. This is the unfortunate result of low volumes and continued reimbursement reductions. Financial stability is imperative, staffing and benefits make up the largest part of our costs and need to be reduced.

This difficult step brings us closer to assuring the community’s health and wellness while achieving financial sustainability.”

This is the recent action in a string of layoffs. Earlier this year, 21 employees were laid off as billing services were subcontracted. Last fall, seven health information management jobs were cut.

Beckers Hospital Review is reporting that the hospital expects losses of more than $8 million for 2017.

The 140 bed hospital provides care to over 70,000 residents in the county.