Day Kimball Healthcare announced on Thursday that it is cutting costs, including 23 full-time positions, because of cuts in state Medicaid.
The company said it a statement that they are putting several “cost-cutting measures” in place to help offset the “recent dramatic reductions in state Medicaid.”
“Once again, our organization has been dealt a severe financial blow from the state that has far-reaching repercussions,” Robert Smanik, FACHE, DKH president and chief executive officer said in a statement. “We have no choice but to be proactive in cutting costs, and are doing so in a way that is measured, thoughtful, sensitive and focused on maintaining the delivery of high-quality care.”
Smanik said that the hospital’s board of directors approved a plan to cut annual operating expenses by around $7 million.
The plan includes adjusting employee benefits and compensation, including freezing wage increases during the current fiscal year and cutting 23 full-time positions, or about two percent of the Day Kimball Hospital workforce, including not filling nine positions that are vacant now, and laying off 16 people, including 11 administrative and operations positions and five non-clinical care positions.
They are also considering selling the Day Kimball Healthcare Center buildings in Plainfield and the sale of Day Kimball HomeCare.
The company plans to eliminate Day Kimball Hospital’s Chief Operating Officer position. Current Sr. VP, COO Donald St. Onge will be retiring in December 2015.
“Given its ongoing financial pressures, DKH has a great need to reduce expenses at all levels of the organization. I also have a personal need to focus on my health,” said St. Onge. “It is just the right time and the right thing to do for my family and for DKH.”
“Don has worked tirelessly on behalf of Day Kimball, our patients and our community and we thank him for his many years of service,” said Smanik. “First and foremost, Don’s health is of utmost importance to us all. His offer to step down now is a noble gesture given our organization’s financial challenges, and one that attests to Don’s commitment to Day Kimball and Northeast Connecticut. Of course, we wish him well.”
The position of Vice President for Marketing and Communications has also been eliminated, It has been vacant since June.
