Hospital officials say lower than expected profits are forcing them to make the cuts.
Spokeswoman Nancy Turner says they ended the first three months of the year with a $10 million deficit. “This is largely due to a pretty dramatic shift in our reimbursement levels and therefore we’re taking some action to close that budget gap.”
Turner says about 90 employees will be laid-off. “These employees are a mixture of nurses, physical therapists, house keeping staff and we feel very confidently that we’ll be able to place most if not all of them into other positions here at Sutter Medical Center.”
The hospital is expected to save about $2 million a year by closing the 38 bed Transitional Care Center.