Memorial, Petaluma hospitals hurt by drop in surgeries, reimbursements

<p>Layoffs could come within a month to Santa Rosa Memorial Hospital and Petaluma Valley Hospital as part of cost-cutting by St. Joseph Health System in Sonoma County.</p><p>In a staff announcement released Friday afternoon, St. Joseph’s interim president and CEO, Kevin Klockenga, said that “as part of several steps we are taking to make up for multimillion-dollar declines in revenue and reimbursements, we do expect to announce some reductions in staff within a month.”</p><p>Klockenga said the final details about which departments and how many employees would be affected is still being examined. The health system, including the Santa Rosa and Petaluma hospitals, has more than 2,000 employees.</p><p>“I ask each of you, during the interim, to refrain from fueling rumors and speculation about the details,” Klockenga wrote.</p><p>The need for cost-saving measures has been discussed at recent employee forums at both hospitals, fueling concern about layoffs among employees.</p><p>Also today, St. Joseph in its weekly newsletter to employees said that “staff reductions, managing staffing through attrition and filling only critical positions are additional steps we are considering.”</p><p>St. Joseph said it has recently renegotiated contracts with Blue Shield and Health Net to increase medical reimbursement levels.</p><p>Some employees at Memorial Hospital seemed resigned to the prospect of more staff reductions.</p><p>“If it happens, it happens, what can you do about it,” said a dietary aide who did not give her name.</p><p>But other employees refused to speculate how many positions would be eliminated because no such details have been officially released.</p><p>“Whatever they do, I think they’ll be honest and fair about it,” said Felicia Frow, a central supply technician.</p><p>Memorial spokeswoman Katy Hillenmeyer said some people have a “mistaken notion that health care providers’ jobs are recession proof."</p><p>But as a result of the economic downturn, the hospital has seen a decline in patients with health insurance and those seeking elective surgery. In addition, the state has reduced Medi-Cal reimbursements by an estimated $6.7 million a year.</p><p>“You don’t make up a $6 million annual gap by minor measures,” she said.</p><p>Sue Gadbois, president of the Staff Nurses Association, reacted with caution to the news of expected layoffs.</p><p>“Of course we’re concerned, but we’re awaiting more information,” Gadbois said.</p>