Forty-seven employees have taken voluntary layoffs at Northwestern Medical Center as part of the hospital’s efforts to reduce financial losses.
Hospital officials told the regulatory Green Mountain Care Board last month that they expected to end the year with a $9.6 million deficit — before the additional financial hit caused by Covid-19. The staff reductions will save the hospital more than $1 million, according to spokesperson Jonathan Billings.
The St. Albans hospital has offered 12 weeks of wages and three months of health insurance coverage to those who agreed to leave their jobs.
The 47 layoffs, which represent 29 full-time equivalent positions, are the first round of cuts. Hospital administrators plan to lay off, or eliminate positions, for an additional 40 full-time equivalents, Billings said. Northwestern will also eliminate some programs and medical services, which Billings said will be identified in the coming weeks.
“That is the ramification of our financial situation,” Billings said. “We’re not going to be as big as we were.”
Last month, the Green Mountain Care Board denied the hospital’s request for a 14.9% mid-year rate increase. The hospital lost money after installing an electronic medical record system, as doctors saw fewer patients and had to be trained to use the technology.
NMC officials told the board Northwestern also had to hire more traveling nurses, which cost about double that of full-time staff.Â
In April, interim CEO Jerry Barbini released a 10-point sustainability plan that included halting construction and renovation plans, adjusting staff salaries and benefits to lower turnover rates, reducing spending for the community wellness program RiseVT, and prioritizing use of telemedicine, in addition to the voluntary reduction in staff.
The financial prognosis has only worsened with Covid-19. The hospital, which previously averaged about two dozen patients a day in its inpatient unit, dropped to three patients a day during the pandemic. Now, the facility’s numbers have risen to about 16 patients a day, Billings said.Â
Northwestern has also had to furlough nurses or reduce the number of shifts they work. “In order [for care to be] financially feasible, you’ve got to send folks home,” Billings said.Â
Other Vermont hospitals have furloughed staff, but none have thus far announced permanent layoffs.
More than 1,200 hospital employees at Vermont hospitals were furloughed or worked fewer hours during the pandemic, as the number of patients seeking non-Covid-related care dropped precipitously. On May 4, Gov. Phil Scott allowed some elective procedures to resume, and some of those employees have returned to work.
Green Mountain Care Board Chair Kevin Mullin said he didn’t expect other hospitals around the state to permanently lay off staff. Some would likely hire more workers, as coronavirus testing continues and patients seek treatment now that hospitals can offer non-Covid care, he said.Â
Mullin praised Northwestern for taking steps to move toward financial sustainability. “I’ll give them credit for their efforts to get their financial ship in order,” he said.Â
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