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Claxton-Hepburn in Ogdensburg cutting 25 jobs in 'restructuring'

Posted 1/20/15

OGDENSBURG – About 25 employees at Claxton-Hepburn Medical Center found out today they will be laid off or moved as part of a larger restructuring of the organization. The overall plan includes …

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Claxton-Hepburn in Ogdensburg cutting 25 jobs in 'restructuring'

Posted

OGDENSBURG – About 25 employees at Claxton-Hepburn Medical Center found out today they will be laid off or moved as part of a larger restructuring of the organization.

The overall plan includes “management restructuring, adjustments to physician practice management, closure of its acute rehabilitation unit, and a minimal reduction in its workforce,” according to a press release from the hospital Tuesday.

Affected employees were notified individually Tuesday, Jan. 20. The reduction of force will be effective Feb. 2.

The manager of the rehab center will be laid off because of low use of the center, according to Claxton-Hepburn spokeswoman Laura Shea.

The employees directly affected by the reduction in force will be let go either by elimination of their positions or reassignment.

The restructuring will allow Claxton-Hepburn to continue the same level of care to the community, officials said in a prepared statement.

“CHMC has a long standing record of providing top notch care to Ogdensburg and the surrounding communities,” said CHMC President and CEO Nate Howell. “Our goal is to ensure that we are structured in a way that will allow us to continue to do so for years to come.”

Shea says the goal is to maximize savings without affecting care.

“That was necessary. We are making sure we are focused in the areas that have the most potential to grow,” she said.

Managers will take on additional duties, Shea said.

“It’s still a very tough day here for us. Losing even one job is hard for us,” she said.

“Any kind of a plan like this requires a very deliberate job, it’s not a simple process.”

Facing changes in healthcare requires the hospital to adjust its operations to accommodate declining reimbursement and the shift in the utilization from inpatient to outpatient services, the hospital’s press release said.

With annual operating revenue of approximately $95 million, CHMC says it must balance revenues with expenses “to allow the medical center to provide quality care and invest in its future,” the statement said.

“Like hospitals nationwide, cuts to reimbursement require the hospital to do more with less. In an environment where healthcare organizations can expect decreasing revenues for the services they provide, shifts in patient utilization must be matched by shifts in infrastructure to maintain viability for the future,” Howell explained.

“The decision to reduce staff is one of the most difficult any leadership team must make,” Howell continued. “The plan allows us to reallocate staff to be more in line with patient demands.”

The plan is expected to allow expansion of core services such as cancer care and primary care, as well as continue collaborations with other hospitals.

Howell said that despite these current challenges, Claxton-Hepburn is well positioned for the future. “Our hospital is recognized at both the state and national levels for its successes in patient care. This responsibility often requires difficult decisions to be made to ensure we are here for future generations.”

Established in 1886, Claxton-Hepburn Medical Center employs approximately 700 full- and part-time people with an annual payroll of $54.7 million.