Winchester, Va. – A year after eliminating 17 full-time jobs and 100 vacant positions, Valley Health has made more job cuts.
"We notified roughly 37 employees that their positions were being eliminated, effective at the end of this month,” said CEO Mark Merrill. “It was in response to the continuing challenges that were having in the economics of health care."
Those challenges include things like changes in reimbursement, an economic recession and Medicare payment reductions in Virginia due to the Affordable Care Act.
"The individuals affected were from across our system: all six of our hospitals, our corporate office, our valley medical transport and our physician enterprise," Merrill said.
Valley Health also eliminated 25 positions that were currently vacant.
They employee about 5,000 full time employees, however, making the layoffs affect less than 1% of staff.
"For those affected it's very unfortunate, because it was through no fault of theirs that their job was eliminated," said Merrill.
Those who were laid off were selected based on a structural decision, and not one of merit or job success. Valley Health believes that they'll save about $10,000,000 due to the layoffs.
"I’m proud of our team, over the past year, for trying to minimize the impact, holding positions open, restructuring work to avoid having to impact individuals who are occupying positions. But unfortunately as we finalized our budget for 2014, we realized we were not able to accomplish the financial objectives quickly enough,” Merrill said.
Valley Health says that if there are no more aggressive changes in health care economics, they do not anticipate needing to make additional cuts over the next two years.