RENO COUNTY — Hutchinson Regional Medical Center on Monday announced it will adjust staffing levels and reduce workforce by 85 employees as a direct result of the healthcare landscape being profoundly impacted by the COVID-19 pandemic, increasing supply costs, lower health insurance reimbursement rates and decreased patient volumes compared to pre-pandemic days, according to a media release from the organization.
Jeff Egbert, interim CEO of Hutchinson Regional Healthcare System said that, while difficult, the reduction is necessary as the system continues to navigate the substantial and lasting financial impacts of the global pandemic. Egbert says the hospital also has taken several actions to manage expenses by aligning the cost structure and service line staffing models with current patient volumes.
“These challenges aren’t unique to Hutchinson,” Egbert said. “Many hospitals and healthcare systems across our nation are facing similar challenges, including many in the Midwest.”
Impacted employees are eligible for a paid notice period, as well as the continuation of health benefits through COBRA.
According to the organization's 2019 Form 990, as reported by ProPublica, the healthcare system lost over $11 million in the period on the form through June 2020, which is the last year for which a Form 990 is available.