MercyOne warns employees of upcoming layoffs. It’s losing money, and the health care system appears to be cutting staff primarily in its administrative areas. “As the leader of MercyOne, I take full responsibility for the current situation,” MercyOne president and CEO Bob Ritz said in a YouTube video made for employees. KCCI has received a copy of the video. “As we provided in our previous weekly note, Mercy One, like other healthcare systems across the country, is experiencing financial losses from patient care services,” Ritz said. The health system has been out of money for 11 months, it continues, which means layoffs. “Frankly, much of the focus of this overall plan is to reduce layers of management, simplify the organizational structure, resize the organization, and cut salaries,” according to the Ritz.MercyOne website. And the company’s healthcare system, which has 18,000 employees in and around Iowa and annual sales of $2.5 billion, isn’t clear how many employees will be laid off. Blaming the pandemic, inflation and the reimbursement gap for payers as the cause of the economic troubles, there has been a fundamental change, indeed, to see if this temporary change is due to the pandemic And now we believe we are facing a new set of economic realities in healthcare,” said Ritz. He said it was a difficult decision to cut back. Dismissed workers are given a retirement package. Click below for more information about Todd Magel.
MercyOne warns employees of upcoming layoffs. It’s losing money, and the health care system appears to be cutting staff primarily in its administrative areas.
“As the leader of MercyOne, I take full responsibility for the current situation,” MercyOne president and CEO Bob Ritz said in a YouTube video made for employees.
KCCI has received a copy of the video.
“As we provided in our previous weekly note, Mercy One, like other health care systems across the country, is experiencing financial losses from patient care services,” Ritz said.
Ritz also said the healthcare system has been in the red for 11 months. In other words, it is a staff reduction.
“Frankly, much of the focus of this overall plan is to reduce layers of management, simplify the organizational structure, resize the organization, and cut salaries. It means we have made the difficult decision to cut positions in the division,” Ritz said.
According to MercyOne’s website, the company’s healthcare system has 18,000 employees in and around Iowa and annual sales of $2.5 billion. It is not clear how many employees will be laid off. The Ritz blames the pandemic, inflation and payer reimbursement gaps for its financial troubles.
“It is important to realize that no one has done anything wrong here. And now we believe we are facing a new set of economic realities in healthcare,” Ritz said.
In a statement, MercyOne said it was a difficult decision to reduce its position. Dismissed workers are given a retirement package.
Click below to read more about Todd Magel.
