Mission Health Warns of Deep Cuts
Mission Health Systems could see more layoffs this year. Ron Paulus, President and CEO, sent employees a letter warning of the growing budget cuts the system will face.
Last August, Paulus released a very similar letter to employees. At the time, he reported as many as 70 people might lose jobs. But now, executives are bracing for deeper cuts.
"This next year's budget will be our single biggest challenge," says Jill Hoggard Green, Mission Health's Chief Operating Officer.
The message is beginning to settle in at Mission Health Systems.
Executives released a video to caregivers this month explaining what challenges the system will soon face, which they say is partly due to the Affordable Care Act.
"Payment for what we're doing is being reduced by more than half a billion dollars over the next ten years," says Hoggard Green.
Western North Carolina's largest employer was not able to meet with us on camera Wednesday, but the letter to their employees says cutting back on labor costs will be one way they'll face the deficit.
"Though we don't have specifics yet, it also means some positions likely will be eliminated as we evaluate and plan for the new models of care," Paulus wrote in his letter to employees on Tuesday.
Many of the positions that avoid the cuts may no longer be eligible for annual raises.
"If you want an annual raise, mathematically, we must reduce our total cost by at least 2% every year just to stay ahead of ongoing reimbursement cuts and other things that we know will challenge us," says Paulus.
Paulus says the company must see significant improvement by October 1 and most of the changes will happen between now and August 20.
By: Hope Hanselman
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