Greensburg-based Excela Health to lay off 78 workers, leave 58 jobs unfilled
Excela Health announced on Friday that it is laying off 78 employees and will leave another 58 positions vacant as the Greensburg-based health system tries to cut costs while coping with a drop in admissions, a spokeswoman said.
“Like many health systems, Excela Health is experiencing a steady decline in hospital admissions,” Robin Jennings said in a statement.
Just a day earlier, officials denied that layoffs were in the offing, but when word leaked out about the furloughs, Excela released a statement explaining the reasons behind the decision.
Jennings said employees will receive a severance package and “some transitional support.”
She confirmed that the system suffered “operational losses” for the current fiscal year. Administrators would not reveal the size of those deficits, saying investment income enabled Excela to offset the losses.
“The good news is that even with our potential operational loss in 2013, our net income was positive and improved over 2012, based upon our strength of our investment portfolio,” Jennings said.
Administrators said they will not know the extent of the losses until September when an audit is completed.
Jennings said the health system was able to save $8 million by cutting costs of supplies, contracts and services for non-staff functions.
“We have also reduced the workforce to remain on par with our volume and revenue trends,” she added.
Like other community hospitals, Excela has had financial problems because of changes in health care, higher costs, declining reimbursements and an increase in unpaid health care it is required to provide to the public.
Excela has experienced internal upheaval from an estimated 60 physicians who formed their own specialty practice to force changes in how the health care system is staffed and operated.
The physicians have resisted pressure from Excela to sign on as employees, preferring to remain independent. The doctors who are members of the new Westmoreland Multi-Specialty Group say they are responsible for about 60 percent of admissions to Excela's Greensburg hospital.
Excela administrators are trying to prevent the physicians from joining competing health care giants, UPMC and the newly created Allegheny Health Network, which was formed earlier this year after the merger of the West Penn Allegheny Health System and Highmark Blue Cross Blue Shield.
Richard Gazarik is a staff writer for Trib Total Media. He can be reached at 724-830-6292 or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Bushy Run Battlefield upgrades to include trail, signs, landscaping
- Greensburg police captain to attend highly selective academy
- Youngwood Fire Department to dedicate memorial at station
- Historic Greensburg Art Center joins Cat’s Meow collection
- Police on hunt for suspects in unrelated Penn Township, Manor cases
- Families welcome new members on Adoption Day in Westmoreland County
- Food drive volunteer in Westmoreland County has purse stolen
- 7 arrested in Latrobe-area drug dealing
- Fall fly-by: Blue Angels stop in Unity to discuss 2015 show
- Jeannette man pleads guilty to attempting to entice child in Louisiana
- Westmoreland County, state AG to get funds from illegal lottery