Hartford HealthCare will lay off hundreds of staff, saying the cuts are necessary because of reduced reimbursement for Medicaid patients.
Hartford HealthCare operates five acute care hospitals in the state; Hartford Hospital, the Hospital of Central Connecticut, Backus in Norwich, Windham Hospital, and Midstate Medical Center.
CEO Eliot Joseph and COO Jeffrey Flaks sent a note to staff Wednesday saying the group will eliminate the equivalent of 335 full time positions, affecting 418 staff members. The cuts will affect every level of the organization, from administration and managerial positions, to front-line medical staff.
Hartford HealthCare said the additional Medicaid cuts made in the recently agreed biennial budget were the final straw, bringing the total reduction in payments over the last five years to more than $100 million.
The Connecticut Hospital Association said all providers in the state are facing a similar squeeze.
“The budget as is extends the hospital tax to $315 million a year, and cuts Medicaid rates and other funding by $58 million each year. This will hurt patient care, services, jobs and the economy,” said spokeswoman Michele Sharp.
Hartford HealthCare said it will review some of its services, and may cut or consolidate what it offers to patients. It’s also passing some of the financial pain on to its suppliers, saying it will spend about $40 million less for products and services in the coming fiscal year.