HILO, Hawaii — North Hawaii Community Hospital is laying off 59 employees, or more than 12 percent of its workforce of about 470.

The Big Island private hospital is trying to shrink a projected $7 million budget deficit.

Publicly subsidized Kona Community Hospital, just 45 miles to the south, last week announced layoffs to save costs

North Hawaii is a private, community-owned facility, and isn't part of the state hospital system.

Public and private hospitals are suffering as private insurers and government programs like Medicare fail to pay them the full cost of the care they provide patients.

They are also burdened by rising costs, bad debt, and the cost of treating those without health insurance and the means to pay.