Tuesday, April 27, 2010

Hospital Reduces Support Staff At Riverside Shore Memorial


Riverside Shore Memorial Hospital (RSMH) today announced that it has reduced its staff by a total of 25 employees including individuals in both management and staff positions. Several recently-vacated positions have gone unfilled which lessened the severity of the necessary cuts. Clinical staff were not directly affected, as changes were focused in areas away from the bedside or treatment area.

This action is the result of continued severe financial pressures facing acute care hospitals, particularly hospitals in rural areas. For the last 18 months, the widespread contraction of the nations economy has negatively impacted hospitals: reimbursements to hospitals for Medicare- and Medicaid-insured patients have declined; people from all walks of life are deferring or delaying medical treatment; and those people who must seek immediate treatment are often less likely to have insurance.

"This is not a decision that anyone in our organization made lightly," stated Joseph P. Zager, Administrator at RSMH. "But labor costs are the largest expense for hospitals, so we are constantly evaluating and modifying our staffing needs in relation to current and forecasted utilization. Unfortunately, this is another example of the economy's continued decline impacting the good, hardworking people and families of the Eastern Shore."

Zager continued, "It is important that our patients understand that this adjustment will not compromise the variety of services we offer or the quality of care we deliver. We were spared more drastic action, like curtailing patient services, by the support we receive from our affiliation with Riverside Health System. Riverside remains strongly committed to our future and the future of healthcare on the Shore."

Staff were offered a transition package that includes 30 days pay plus an additional amount based on length of employment.

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