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HOPKINSVILLE, Ky. – Jennie Stuart Medical Center (JSMC) announced Wednesday that it will lay off 70 employees to increase efficiency.
“JSMC, like many hospitals nationwide, is facing significant regulatory and reimbursement challenges,” the organization said in a release. “We are adjusting to federal sequester cuts, declining Medicare reimbursement, an increasingly complex and restrictive Medicaid system, and a commercial insurance marketplace that is placing more of the burden of cost on its insureds.”
The release said the company has maintained a “solid financial position” but finished the second quarter of 2014 with an operating loss.
In addition to eliminating 70 positions, JSMC will take steps to manage monthly operating expenses, tighten travel and marketing budgets, reduce supply costs, and renegotiate contracts with vendors.
“We believe these job eliminations, in conjunction with other focused cost reductions, will provide the ability for JSMC to adjust its cost structure, and become a more efficient, quality driven, competitive healthcare provider for the patients in our regional marketplace moving forward,” the release said.
The release did not include which positions will be cut.