North Adams Hospital Cuts 12 Positions, Reduces Hours
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The hospital will also close its satellite physical therapy location in Adams effective Jan. 10. Patients will be able continue their care at the hospital's rehabilitation service.
Earlier this fall, Northern Berkshire Healthcare cut loose at least 13 people in staff and management, including longtime managers Billie Allard and Kathy Arabia. Hospital officials said the cuts would save some $1.2 million. These additional reductions, set to happen in January, will bring the savings up to $2 million a year.
This time around, the axe fell on lower-level employees in the facilities, medical imaging and rehabilitation departments. In other departments, including environmental services, finance and human resources, some employees will see their weekly hours cut.
The number of employees affected isn't yet known because union members have "bumping rights" over those more junior, which could mean unanticipated changes for some. The changes go into effect on Jan. 10.
"We worked very hard to minimize the impact on individuals and families, and we offer our sincere sympathy to those affected by these changes," said Richard Palmisano, president and CEO of NBH, in a statement. "These are very difficult times in healthcare — across the nation — and we had to make tough choices. In the end, our goal is to restore fiscal stability to the hospital so that we can continue to provide the many essential services that our community needs."
The hospital's been getting guidance from Navigant Consulting, which offers guidance for health-care systems (among others) in reimbursements and financial structuring. The health-care system is following recommendations by Navigant, including divesting itself of the resource-draining Sweet Brook and Sweetwood elder care and residential facilities.
Still, the system is reportedly carrying more than $50 million in debt and is looking at another operating loss for the year. It's exploring Chapter 11 bankruptcy and merger options. Officials are seeking "Critical Access Hospital" status, a federal designation to ensure health care for those enrolled in Medicare, and federal grants being offered through health insurance reform for community health clinics.
The 125-year-old hospital has been hit by reductions in Medicare reimbursements, the economic collapse that has cut into investments and voluntary medical procedures, and changes in health care delivery and payments.
Thirty years ago, it wasn't unusual to see the number of patients top 150; the most recent patients counts have been around 25. (Interesting fact: the hospital had 12 beds when it opened in 1885.)
Not surprisingly, staffing has been at the core of tense negotiations this past year with both the Massachusetts Nurses Association and 1199 Service Employess Union International.
Officials have said they are seeking financial stability to keep the health-care system, not only a major employer for the region but also an important medical service provider for surrounding communities, functioning in the changing economic and health-care climate.
"We hope that it is clear that we have a strong, workable plan in place to stabilize our finances by restructuring both our debt and our approach to operations, to increase revenue via a transition to a Critical Access Hospital status, and ultimately, to affiliate with another health care organization to create more opportunities to better serve our community," Palmisano said.
