Citing the financial challenges accompanying New Jersey's economic crisis, Saint Clare's Health System is eliminating 180 jobs and undertaking a variety of other expense reduction measures.
Les Hirsch, the health system's president and CEO, said the changes are necessary to ensure the health system's future stability.
"After much deliberation, we've had to make some difficult decisions and changes to improve our financial health," he said. "It's no secret that many industries are feeling the strain of the country's current economic downturn. This is especially true for hospitals across the country, but even more so for hospitals in New Jersey. We lack adequate public funding for charity care and other government sponsored programs such as Medicare and Medicaid."
Hirsch noted that this year's New Jersey state budget removed more than $120 million in charity care and other hospital funding. Saint Clare's share of these funding cuts was $3.2 million.
According to Hirsch, every facet of Saint Clare's operations is being scrutinized to determine how best to reduce cost and increase revenue.
The 180 job eliminations will be accomplished through attrition, productivity improvements and approximately 100 layoffs. Hirsch said the reductions would not have a direct impact on patient care. He confirmed that affected employees would receive separation packages based on years of service and employment status, as well as transition assistance.
"We have served this community for more than 100 years, and while staff reduction is always a painful last resort, the current circumstances offer no alternative," Hirsch said. "For years hospitals in New Jersey have struggled financially due to the lack of adequate funding and that struggle continues today as more than half are losing money."
Hirsch said the New Jersey Commission on Rationalizing Health Care Resources found that New Jersey hospitals are part of a dynamic healthcare delivery system that is impacted by external forces that are outside of an individual hospital's control. He said the report validates the underfunding of New Jersey's healthcare system, but there has been no real change in funding levels.
Saint Clare's operates hospitals in Denville, Boonton Township, Dover and Sussex Borough, N.J. It has about 3,500 employees.