Abington Health laying off 95 workers

Abington Health is laying off 95 workers and reducing hours for others, as it struggles to cope with declining inpatient-care volumes and decreasing reimbursement rates from health insurers.

The Montgomery County health system is the parent company for Abington Memorial Hospital and Lansdale Hospital, as well as a network of outpatient centers. It's cutting 80 full-time jobs and 15 part-time jobs before July 1.

Abington Health has approximately 6,000 employees.

In response to questions about job cuts, Laurence M. Merlis, president and CEO of Abington Health, issued the following statement:

“Like many other regional health systems, Abington Health is navigating changes in the health-care environment. These changes are numerous, the most significant being the shift in volume from inpatient care to outpatient care and declining reimbursements. In response, we have been undertaking a variety of initiatives to increase revenue and reduce expenses. In addition, we are implementing a number of changes related to staffing.

“As individuals leave the organization, whenever possible, we make every effort to eliminate positions by attrition. In preparation for fiscal year 2015 and in response to shifting volume, we are trimming overall work hours in some departments; in others we are reducing staff hours from 80 to 75 or 72 per pay period. While we have looked at every way to reduce hours, layoffs are unfortunately unavoidable. Our human resources department is working very closely with those who are being laid off. When appropriate, they are placing people in other open positions. Severance packages are being offered to affected employees, and human resources will be providing career counseling services. I recognize how difficult staffing changes can be, and I sincerely hope that each and every one affected will find a new position with promise for the future.”

According to the latest financial data available from the Pennsylvania Health Care Cost Containment Council, Abington Memorial Hospital generated revenues of $198.6 million and a net income of $10.6 million in fiscal 2013, while Lansdale Hospital had revenues of $79.3 million and a net income of $3.6 million.

Abington Health’s job cuts are the latest in a string of layoffs at area hospitals and health systems. Earlier this year Crozer-Keystone Health System, Delaware County’s largest health-care provider, laid off about 250 workers because of mounting financial losses. More recently, Mercy Health System eliminated 35 positions and Lourdes Health System cuts 23 jobs, both as part of service realignments and adjustments to cope with drops in admissions and lower payment rates.

Over the past year, Pennsylvania hospitals had eliminated 3,900 jobs in response to Medicare payment reductions, changes from health-care reform and a "generally sluggish economy," according to a recent study from the Hospital & Healthsystem Association of Pennsylvania.

Source: Philadelphia Business Journal