Granville Health System Reduces Staffing Due to State and Federal Legislative Cuts

10/8/2013

OXFORD, NC (October 8, 2013) – Granville Health System (GHS) announced that state and federal legislative cutbacks and the changing nature of the health care industry due to the Affordable Care Act (ACA) have lead to the elimination of 19.8 positions at the health system.

In a letter to employees this week, L. Lee Isley, GHS CEO, announced the positions had been eliminated by October 7. Of those positions, 6 were currently vacant and will not be filled. Of the remaining positions eliminated, 6.8 are being drawn from a reduction in staffing hours.

That leaves 7 current Granville Health System positions currently filled, reduced through the organization’s reduction in force.

“This was not a decision taken lightly,” said Isley. “The layoffs were made as hospitals around the country face unprecedented challenges and financial pressures from both the federal and state levels due to the Affordable Care Act. The organization evaluated every option before being resigned that a reduction in force was the only solution.”

In fact, over the past two years Granville Health System has been planning for and implementing initiatives to help counter balance the impending financial implications of the Affordable Care Act.

Over the past 24 months GHS has made the following adjustments in operations, reducing approximately $1,052,500 in expenses:

  • Re-negotiated Magnetic Resonance Imaging (MRI) lease arrangement
  • Restructured physician employment models
  • Initiated efficient work models for Emergency Medical Services
  • Restructured the inpatient physician model
  • Developed Increased productivity models for clinical areas
  • Implemented changes to the employee benefit plan model

Still, the growing number of State and Federal mandates connected to the Affordable Care Act has challenged the Health System beyond these cost savings.

 

Additional action was necessary as a result of a convergence of factors that have depressed, and will further depress, Granville Health System revenues. Some of the larger legislative cuts affecting GHS in 2014 are:

  • A 2 percent ( $314,700) cut in Medicare payments over the last year due to federal budget sequestration;
  • Further Medicare payment reductions ($382,000) due to the Affordable Care Act;
  • The state’s decision not to expand Medicaid coverage for the uninsured; and
  • The state’s recent decision to dramatically cut ($277,300) Medicaid reimbursements for all hospitals in North Carolina.
  • The state’s new Front Loaded Unemployment Formula increase ($63,000)
  • CMS Recovery Audit Program: Recovery Audit Contractor (RAC)  ($600,000)
  • The state’s requirement to increase retirement contributions to fund Treasury operations ($131,600)

GHS has also improved revenue through increased volume in the hospital’s newly constructed Emergency Department and other programs. Restructuring areas within the organization’s billing system has also improved the hospital’s finances. In addition, GHS has consolidated specialty physician practices at the renovated 102 Professional Park building, providing patients with more convenient service while allowing a savings through efficiencies for the Health System.

For Granville Health System, reduced reimbursements due to the Affordable Care Act and other regulatory changes are expected to total well over $1.8 million in fiscal year 2014. The cuts in staffing are equivalent to $956,258 in salaries for fiscal year 2014.

“Granville Health System is not immune from the challenges currently faced by every hospital in America,” said Isley. “Consequently, we are forced to make some very difficult decisions to ensure we position GHS to continue serving our community, delivering the highest level of quality care.”

Granville County residents should not see any changes, based on these cutbacks, in services to the community or Granville Health System’s high level of commitment to quality care and patient safety.

 

About Granville Health System

For more than 93 years, Granville Health System has been delivering quality health care close to home. To meet the growing needs of our community, Granville Health System has expanded its services throughout Granville County, offering convenient access to medical care where you work and live. GHS received a number of national awards, including the Hospital of Choice Award which named Granville Health System as one of the top 100 hospitals in the country in 2009, 2010, 2011 and 2012. GHS also received the Community Value Index Five-Star Hospital Award, placing GHS in the top 20% of hospitals in the country in offering financial value to the communities served, while reinvesting back into facilities in order to provide for current and emerging health needs. Recently, Granville Health System was named one of the nation's Top Performers on Key Quality Measures by the Joint Commission, the leading accredit or of health care organizations in America. The GHS main campus is located at 1010 College Street, Oxford, North Carolina. For more information about Granville Health System visit GHS online at www.ghsHospital.org.

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