Kokomo Tribune; Kokomo, Indiana

Local News

May 24, 2013

Layoffs at St. Joseph Hospital possible

St. Vincent Health announced reduction in force at its 22 hospitals.

St. Vincent Health announced Thursday it would be laying off employees across its 22-hospital system, which includes St. Joseph Hospital in Kokomo.

The layoff process will take place by June 30, officials said in a statement.

The local impact is still unknown. Sandy Herman, marketing director for the hospital, said she didn’t know how many people would be affected or which departments.

“Today was the first step in notifying our associates and stakeholders,” she said Thursday afternoon.

Right now, the hospital is doing a “very rigorous” review of its accounts and is searching for ways to save money, she said.

In a press release, St. Vincent Health officials said they continue to address the challenges of lower-than-budgeted volumes, decreasing reimbursements and the Affordable Care Act’s mandated reduction in payments.

“As we value each individual’s commitment and dedication to the Mission of St. Vincent Health, our thoughts and prayers are with all associates and their families during this time,” said St. Vincent Health CEO Vincent C. Caponi in the press release. “We understand that other health systems are facing similar challenges and making difficult decisions as well. To sustain our health system’s service to patients and families across the state, we must re-imagine the way we provide holistic care ‘body, mind and spirit.’ ”

St. Vincent Health and individual hospital leadership teams reviewed and continue to evaluate costs throughout the system to ensure alignment with the needs of the communities it serves, the release said.

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