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The Honolulu Advertiser
Posted on: Wednesday, July 16, 2008

Struggling Big Isle hospitals to lay off 114 staff members

By Curtis Lum
Advertiser Staff Writer

Two Big Island hospitals have announced they will lay off more than 110 employees at three facilities in the face of mounting financial losses.

The North Hawaii Community Hospital in Waimea late yesterday afternoon said it is laying off 45 full- and part-time employees at the hospital and another 14 at its Waimea Women's Center. The workers were notified of the job action by hospital administration.

The layoffs represent 12.6 percent of the hospital staff, the hospital said in a statement. The cuts should result in a savings of about $4 million, or 14.7 percent of the hospital's annual wages and benefits budget, officials said.

The descriptions of the jobs that were being cut were not released by the hospital.

Jeff Comer, chief executive officer and administrator, was unavailable for comment yesterday. But in a statement, the hospital said the action was necessary to address an "unsustainable financial predicament." The hospital had projected more than $7 million in annual operating losses.

"Such a budget deficit causes severe cash flow constraints," the hospital said. "By reducing our full-time employees by 12.6 percent, we are more closely aligning our staffing levels with national hospital standards and easing our financial condition."

The hospital said the personnel reductions are part of a "Get Well Plan" that includes revenue-building initiatives. They include expansion of clinical services, physician recruitment, and improvements in billing procedures and staffing.

The news follows an announcement by the Kona Community Hospital in the past week that it would lay off about 55 workers, or 10 percent of its workforce. The hospital is part of Hawaii Health Systems Corp., the state-subsidized network of hospitals that serves the neighbor islands and rural areas.

The network's West Hawai'i Region, which includes Kona Community and Kohala hospitals, has projected a $7.6 million deficit this fiscal year. Overall, Hawaii Health Systems Corp. is estimated to lose $62 million this year.

Officials at both North Hawaii Community Hospital and Kona Community Hospital said the cuts will not affect patient care.

The Associated Press contributed to this report.

Reach Curtis Lum at culum@honoluluadvertiser.com.