Charleston Area Medical Center to Shed 300 Employees
Charleston Area Medical Center (CAMC), which is the primary hospital system in Charleston, West Virginia, has announced that it will be cutting 300 jobs as it faces financial difficulties. The job cuts include 56 unfilled non-clinical positions. Another 75 positions are going to be eliminated through attrition. The rest of the cuts will include layoffs of hospital staff who are employed in full-time positions.
The job cuts have been announced ahead of the hefty losses expected to hit the hospital this year. The hospital system is expected to lose more than $40.0 million by the end of this year.
According to an official statement sent out by the hospital system, the layoffs had become necessary in order for the hospital “to remain sustainable for the future” and to continue providing critical care in Charleston.
Decline in Revenue to Blame: CEO
The president/CEO of CAMC, David Ramsay, spoke about the layoffs and the reasons behind the hospital system’s budget shortfall in a video posted on “YouTube.” Ramsay has cited a decline in revenue from insurance reimbursements as the primary reason behind the network’s financial troubles. The hospital system has seen a decrease in Medicare reimbursements under the Affordable Care Act. At the same time, the higher costs of drugs and technology have further cut into profits. As a consequence, costs per patient have increased.
According to Ramsay, the majority of the patients at CAMC hospitals are enrolled in government insurance programs. The CEO says that the government-run Medicaid and Medicare programs are paying less in reimbursements than the actual costs being incurred by the hospital. Ramsay says that only 17% of CAMC patients have private insurance. This number has shrunk from 20% five years ago. The difference equates to a decline of nearly $50.0 million in revenue every year.
In addition to the layoffs, CAMC has announced cuts to various programs. The hospital system is closing a pharmacy, a rehab program, and a childcare development center.
Charleston Area Medical Center is the third-largest employer in West Virginia. The hospital system has about 7,000 employees and includes Memorial Hospital, General Hospital, and Women’s and Children’s Hospital in its network.
“CAMC to cut 300 full-time equivalent positions by the end of the year,” Fox 11 Eyewitness News, July 26, 2017.
“Charleston Area Medical Center to cut 300 jobs,” The Register-Herald, July 27, 2017.