Bad Debt Blamed for Cuts at Hospital System

Due to budget cuts, Ohio-based Mercy Health Partners has bid goodbye to 23 corporate employees’ positions, according to a story in the Cincinnati Business Courier.

The trimming didn?t stop there. The trims, which went into effect May 26, will save $5 million, said Mercy spokeswoman Julie Borths, and were due in part to declining third-party reimbursement and a sharp increase in charity care and bad debt.

In a memo to employees, Mercy CEO Thomas Urban said the decision to make the cuts was “extremely difficult.” He said the move was necessary to achieve financial goals without sacrificing quality care.

“We are in an industry that is undergoing tremendous change due to external forces, and some of the challenges we face could not be anticipated. As we prepare budgets and operating plans for 2007, we will continue to be sensitive to these realities, and will adjust our expenses accordingly,” Urban said.

You can read more about this story at Mercy Health Partners trims 23 corporate, 20 vacant jobs.