Wright Memorial Hospital is not expected to be impacted by a decision made late last week to restructure the organization at Saint Luke’s-Shawnee Mission Health System.
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Wright Memorial Hospital is not expected to be impacted by a decision made late last week to restructure the organization at Saint Luke’s-Shawnee Mission Health System.
Decreases in Medicare reimbursements to health systems throughout the United States have resulted in SLSMHS announcing plans to restructure its organization in order to effectively compete and sustain its commitment to providing quality health care services.
G. Richard Hastings, SLSMHS president and chief executive officer, said the changes are being made in an effort for Saint Luke’s “to maintain our strong financial position and to sustain our commitment to quality.” As part of the 1997 Balanced Budget Act, Medicare reimbursements for Saint Luke’s will decline by $158 million over the next five years while, Hastings said, Saint Luke’s will be expected to provide the same or greater level of services.
For Wright Memorial Hospital in Trenton, the reimbursement reduction will be $2 million over the five-year period.
According to Hastings, the restructuring will reduce Saint Luke’s expenses by $65 million and will eliminate one, and in some cases two, layers of management, with approximately 250 positions being cut. Whenever possible, Hastings said the staff reductions will be from management, leadership and other non-patient care areas. Because of its current budget performance, Wright Memorial Hospital will not be impacted by the announced staff reductions.
“Wright Memorial Hospital’s relationship with the SLSMHS remains critical to our continued ability to serve the health care needs of our community in a cost effective manner,” said Ralph Goodrich, senior executive officer of WMH.
“The health care environment has changed and these proactive steps are necessary so that we can continue to provide quality health care services,” Hastings said.