Due to a decline in patient volumes and reimbursement rates, Ministry Health Care — which includes hospitals in Eagle River and Woodruff — announced Wednesday a reduction in workforce of more than 225 full-time equivalent employees.
Hospital officials said factors leading to the layoffs include:
—?High-deductible health insurance plans that have led to decreased demand for physician and outpatient services; and
— Sequestration that has resulted in a $10 million annual reduction in payments to Ministry for Medicare services.
Officials said the reduction in force will increase productivity by better aligning the organization’s size to the current and future decreased patient volumes and reimbursement. The number of layoffs at individual hospitals and clinics was not announced in a Ministry press release Wednesday.
“Coming to this conclusion has not been easy,” said Nick Desien, president and CEO of Ministry Health Care. “We recognize that a decision to reduce the size of our workforce will impact the lives of many of our friends and colleagues. However, it is necessary to continue our mission of providing the highest quality of care to our patients, especially the poor and vulnerable, without a disruption in services.
“We are, in effect, re-establishing the basis for staffing across our healthcare system at a time when the environment in which we work continues to change at an ever-increasing rate,” Desien said. “Our mission calls us to use innovation and creativity to provide the best care possible to our patients while also being good stewards of our resources.”
Ministry generates nearly $2.2 billion in annual operating revenue with 15 hospitals, 47 clinics and more than 12,000 associates, including 650 physicians and advanced practice clinicians. Ministry Health Care recently joined Ascension Health as the second health-care ministry in Wisconsin.