St. Vincent Health eliminating about 865 jobs in Indiana
Indianapolis Business Journal
June 28th, 2013
St. Vincent Health said late Friday afternoon that it has made cuts that will reduce its labor costs by 5 percent--a move that will eliminate about 865 jobs in the state.
St. Vincent employs about 17,300 at its 22 hospitals across Indiana. It was not clear how many workers were losing their jobs within the Indianapolis area. However, people familiar with the cuts said the reductions were heavy in the administrative ranks, and many of those jobs are on the city's north side.
The reductions are meant to save money as Obamacare and Congressional budget cuts promise to take a bite out of hospital reimbursement rates. At the same time, St. Vincent's parent organization, St. Louis-based Ascension Health Alliance, is pushing to boost operating profit margins across its national chain of Catholic hospitals.
All hospitals are trying to cut expenses drastically, by as much as 25 percent, in order to prepare for a future they expect to be far more austere than the past. With personnel typically accounting for 60 percent of hospital expenses, staff reductions are an inevitable part of that process.
But St. Vincent's layoff announcement is the largest single reduction to date among Indiana's largest hospitals.....
...The 2010 Patient Protection and Affordable Care Act, also known as Obamacare, called for $155 billion in cuts to hospitals' Medicare payments over 10 years. Then the fiscal-cliff deal on Jan. 1 of this year chopped out another $15 billion. And the budget sequester, which hit March 1, looked ready to sap another $10 billion.