Mercy Cites Rising Costs of Drugs, Supplies Among Reasons For Layoffs This Week

Jun 20, 2019

Mercy Springfield
Credit Mercy

Mercy Springfield is laying off workers.  According to a statement from Mercy, the decision to cut down its workforce was made because the healthcare system “continues to be challenged by reduced reimbursement” for the services it provides, “especially from Medicare and Medicaid which do not fully cover the costs of care.”

The statement said Mercy is also seeing increased expenses for labor “in an increasingly competitive job market,” and it’s impacted by rising costs for drugs and supplies as well.

The healthcare system said the restructuring this week reduces “targeted positions” and moves some employees into new roles.  Though Mercy is not releasing specific numbers at this time, it said the changes affect less than one percent of Mercy's 45,000-member workforce.

Mercy said it will help laid off workers find new jobs and is offering a severance package to them.

Here's the full statement from Mercy Springfield:

"Mercy, along with other health care providers, continues to be challenged by reduced reimbursement for the services we provide, especially from Medicare and Medicaid which do not fully cover the costs of care. At the same time, we are experiencing increased expenses for labor in an increasingly competitive job market, as well as rising costs for drugs and supplies.

 

While we will not compromise the outstanding quality of care we provide to our patients, we must work as efficiently as possible. That is why are restructuring this week, reducing targeted positions and moving some co-workers into new roles. The changes affect less than 1% of Mercy’s 45,000-member workforce.

 

Our transition plan for co-workers who are impacted reflects Mercy’s commitment to dignity and compassion. Our hearts and prayers go out to our affected co-workers and their families. They will receive help finding new jobs and a severance package including compensation and benefits based on their position and length of service."