Wednesday, June 25, 2008

Sutter to lay off 11 percent of its staff
SR hospital cites costs, fewer admissions for loss of 123 jobs

The San Francisco Chronicle - by Martin Espinoza

Sutter Medical Center plans to lay off 11 percent of its staff this week, eliminating 123 jobs as the Santa Rosa hospital struggles with rising costs and declining patient admissions.

Hospital officials would not reveal exactly which departments will be affected by the layoffs, which are expected to be formally announced Thursday. The cuts will include 86 employees with benefits and 37 relief employees who do not receive benefits, Sutter officials said.

The layoffs are designed to address shortfalls while ensuring the hospital can continue to deliver services, Sutter CEO Mike Cohill said in a memo sent to employees Tuesday afternoon.

"Regrettably, we must reduce our employee numbers, and we will be taking the difficult steps of notifying staff individually by the end of this week," he wrote.

Sutter employs 1,081 workers at its Santa Rosa medical center. Hospital officials said Sutter will continue to meet obligations for providing medical services to the indigent under its contract with Sonoma County.

But county Supervisor Mike Kerns questioned that ability in light of such significant cuts.

"This raises some real concerns about Sutter's ability to meet the requirements of the health care access agreement," he said. "My understanding is that they have said they will meet those needs. But when you lay off a large number of people, generally it makes it difficult."

Cohill first notified employees of the possible layoffs during a meeting last Wednesday. Many employees since have been wondering who among them would lose their jobs.

Cheri Rickert, a licensed vocational nurse who has worked in the hospital's second-floor rehabilitation unit for four years, said she was told last week her job likely would be eliminated. Rickert, who is also part of the labor bargaining team, said the hospital's rehabilitation unit has been closed since June 5.

"I'm probably right on the top of their list," Rickert said. "I have vacation slated for the middle of July for three weeks. I'm going to Georgia to see my son when he comes home from his third tour in Iraq, and I probably won't have a job when I get back."

On Tuesday, several employees in the hospital's central supply department sat at a picnic table near the main entrance to the hospital, taking a brief break. They said they were told Monday their department of 11 full-time and part-time workers would be reduced to five.

For months, Sutter officials have been examining ways to reduce financial losses at the Chanate Road hospital due to inadequate Medi-Cal reimbursements and increasing numbers of insured patients flocking to the members-only Kaiser Permanente system.

Cost-cutting measures at the hospital became more imperative after March, when Sutter's plans to transfer its county contract to Santa Rosa Memorial Hospital collapsed. Sutter says it has lost $70 million at the medical center in the past five years. Its daily patient census has dropped from 120 patients to 80 in the past two years. Earlier this month, Cohill hinted at possible layoffs when he said the medical center should be "staffed like an 80-bed hospital should be staffed." John Borsos, vice president of United Healthcare Workers West, questioned Sutter's stated financial losses.

"Sutter Health, as a system, made well over $600 million last year," Borsos said.

Labor representatives were scheduled to meet Thursday with Sutter officials to discuss extending its union contract for hospital employees, Borsos said. However, Sutter canceled the meeting, he said.

The labor contract for employees at the medical center ends June 30.

"The hospital needs to sit down with its caregivers and talk about the long-term future of the Sutter facility in Sonoma County," said Borsos, adding that more transparency was needed.

"We were supposed to go into negotiations," he said. "The contract requires them to make every effort before they can lay a caregiver off."

You can reach Staff Writer Martin Espinoza at 521-5213 or martin.espinoza@pressdemocrat.com