ELLSWORTH — Citing global economic turmoil and unique challenges facing health care organizations, officials at Maine Coast Memorial Hospital announced Wednesday that 12 full-time and two part-time employees would be laid off as part of the hospital’s effort to stabilize its financial situation.
Kristin Tardif, vice president of marketing, said no doctors would be cut from the hospital staff and layoffs would be made across the board, including clinical and administrative workers.
Other cost-saving measures announced include a salary freeze, a voluntary reduction in executive compensation for the coming fiscal year and reductions in employee benefits. The hospital also plans to renegotiate vendor relationships as a way to reduce costs.
Specific challenges, such as chronic underpayment from governmental payers, increasing numbers of uninsured and under-insured patients, rising bad-debt levels and a decline in preventive and screening visits, were cited as contributing factors.
With 696 employees, Maine Coast Memorial is the second largest employer in Hancock County. It’s payroll and use of local services and suppliers adds $43 million to the local economy.
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