Layoffs, cutbacks at Palm Drive Hospital

Palm Drive Hospital has laid off or reduced work hours for 40 employees as the Sebastopol facility inches back to financial stability.

The labor reductions across 15 hospital departments affect 15 percent of the hospital's 267 employees and equate to a loss of 20 full-time staff positions, according to Chief Executive Officer Thomas Harlan.

"We want to emphasize that this initiative had a guiding principle of maintaining our quality of care as the first priority," Harlan said Thursday in an email. "Of course, we will continue to staff according to state mandated nursing ratios. As we reviewed various cost containment options, reduction of infrastructure cost was an important focus."

The reductions include eight staff nurses, Harlan said.

Nurses last week learned of the layoffs and a plan that would reduce the size of the hospital from 37 inpatient beds to 14. Approximately 80 nurses at Palm Drive are represented by the California Nurses Association.

The hospital had a loss of more than $4.2 million, according to a financial report, for the fiscal year ending in June. The loss is attributed in part to declining patient volumes.

Hospitals nationwide have cut staff as they face changes in the way health care is delivered. Hospitals are expecting a reduction in insurance payments as the federal Affordable Care Act is implemented.

Healdsburg District Hospital in November laid off 30 employees or 8 percent of its workforce.

You can reach Staff Writer Matt Brown at 521-5206 or matt.brown@pressdemocrat.com.