Stephens County Hospital Announces Cost Cutting Measures

In Toccoa, Stephens county hospital announces cost-cutting measures that will affect the hospital’s employees.

 

Hospital Administrator Ed Gambrell announced  that effective December 1, employees making over $10 per hour will see a 5-percent decrease in pay.

 

In addition, Gambrell said the hospital will eliminate seven positions.

 

Gambrell says the decision comes as a result of continued financial challenges at the hospital coming from economic pressures.

 

“Although I think people sometimes blame the economy for more than it should be blamed for, but the economy has been very poor. Which has meant there have been more people out of work ,and, therefore, they don’t have health insurance. There has also been people who still work, but they no longer have health insurance or still work and have health insurance, but it has a high deductible and not as good of coverage as it once did.” Gambrell said.

 

Gambrell said the hospital has taken other cost-cutting measures previously in an effort to avoid these steps.

 

However, he says he feels they are now necessary, but it was not an easy decision.

 

“It’s just one of those things that is difficult, painful to do, but at the same time, it’s the kind of decision that you have to look at where you are. And sometimes good leadership demands tough decisions, and this is one of those times. It would be easy to put our heads in the sand, so to speak, and just kind of hope and pray that things get better. And maybe they would, but there is a better chance that they would not, and several months down the road we would be in a much more dire condition financially than we are today,” said Gambrell.

 

Stephens County Hospital Authority Chairman Mark Wilkinson Echoes that, saying that while it is not a decision the Authority wanted to make, it is one they believe is in the facility’s best interest.

 

The pay decrease alone is expected to save the hospital $1.2 million this fiscal year.

 

Gambrell said that this decision is not tied in any way to the hospital’s ongoing dispute with Medicare, which has withheld some $800,000.

 

Gambrell and Wilkinson also say that if the hospital’s economic picture improves, reinstating some or all of the cuts would be considered.