SPRINGFIELD, Mo.– Late Wednesday evening, phone calls came into the Ozarks First newsroom reporting “massive” layoffs at Mercy Hospital. The next morning, the hospital is responding to our requests for more information.
In a statement, which you can read in full below, the hospital confirmed it is letting people go, saying it is, “reducing targeted positions and moving some co-workers into new roles.”
Mercy says the staffing shifts are the result of “reduced reimbursement for the services we provide,” adding that Medicare and Medicaid’s failure to provide full coverage is partly to blame.
The hospital has not confirmed how many layoffs there have been so far, but the statement says it’s less than 1% of the Mery’s four-state staff.
Read the full statement here:
Mercy, along with other health care providers, continues to be challenged by reduced reimbursement for the services we provide, especially from Medicare and Medicaid which do not fully cover the costs of care. At the same time, we are experiencing increased expenses for labor in an increasingly competitive job market, as well as rising costs for drugs and supplies.-Mercy Hospital Spokesperson
While we will not compromise the outstanding quality of care we provide to our patients, we must work as efficiently as possible. That is why are restructuring this week, reducing targeted positions and moving some co-workers into new roles. The changes affect less than 1% of Mercy’s 45,000-member workforce.
Our transition plan for co-workers who are impacted reflects Mercy’s commitment to dignity and compassion. Our hearts and prayers go out to our affected co-workers and their families. They will receive help finding new jobs and a severance package including compensation and benefits based on their position and length of service.
Ozarks First is still diving into this story. Stay tuned for updates posted to this page.