After facing major cuts in reimbursement along with an increase in charity care, Ozarks Medical Center said it has taken steps to strengthen finances by reducing annual expenses, including the loss of jobs and decreased hours for employees.
OMC, which has a total workforce of approximately 1,300 individuals, said 32 positions are being eliminated and at least 12 open positions will not be filled. In addition, many positions will experience a decrease in hours worked each pay period. Management team members are taking a 5 percent pay cut.
While some employees have lost their positions, OMC said it continues to recruit for open positions that it must fill for quality, safety and service reasons. It is anticipated some of the employees whose current positions were eliminated will be able to transfer into open positions.
The cost of unreimbursed care OMC provides continues to increase. In 2012, OMC’s total charity care and bad debt, which is care provided to patients who cannot pay or have the means to pay but do not, reached $31.3 million. This was a $7.7 million increase over 2010.
According to OMC President and CEO David Zechman, the medical center’s finances have been greatly impacted by several factors, including the general economy of the region, lower than expected volumes, cuts in federal healthcare payments from Medicare via the April 1 sequestration law and an increase in the number of patients who are unable to pay for healthcare. The sequestration cut will decrease 2013 OMC payments from Medicare by approximately $660,000.
“Making a reduction in the work force was an extremely difficult and painful decision. However, with current and future payment and reimbursement reductions, we know this is critical to stabilizing the financial health of the organization,” Zechman said. “As the area’s largest employer, we have a commitment to remain a strong company, both for the good of healthcare and for the local economy. OMC is dedicated to providing the best care possible and to its mission of improving the health of the people and communities we serve.”