BOWLING GREEN, Ky (WBKO) -- Officials at TJ Samson Community Hospital say, every hospital and healthcare provider across our nation is faced with one of the most challenging and trans-formative times in history.
"There were directors, there were some coordinators let go. There were people involved in certain aspects of the hospital that we have had from a service line stand point, let go," said Henry Royse, Interim CEO of TJ Samson Community Hospital.
Hospital officials say there was not one single department overlooked when making the decision to cut over thirty jobs.
Officials say, one major cause of this cut back is the Affordable Care Act, that took effect January of this year.
“In Barren County alone, we have 3,400 more Medicaid recipients coming to our hospital for treatments and the reimbursement for those folks continues to go down," said Henry Royse, Interim CEO of TJ Samson Community Hospital.
Inadequate financial software, caused by a vendor, is another reason for the job reduction. The hospitals says it is costing tens of millions of dollars in unrecoverable bad debt.
"We didn't send out bills for 60-90 days. We've had tremendous problems recovering from the things that don't work about the software," said Henry Royse, Interim CEO of TJ Samson Community Hospital.
Along with the elimination of jobs, the hospital is also reducing pay of current employees.
Senior management's salary will be reduced by 10%. Along with salaried physicians who will also take a 10% salary cut. Employees who currently make more than $10.00 per hour, will see reductions between 2% and 6%. This is all effective until September 30, the end of this hospital's fiscal year.
"The biggest surprise in this entire operation is that our employees have been courteous, they've been understanding, and they've received the news probably better than any of us involved have expected," said Henry Royse, Interim CEO of TJ Samson Community Hospital.
Officials say this staff reduction is not temporary and they will continue to adapt to this new, more challenging environment.
Hospital officials say those who were laid off will receive their benefits through April 2014. The hospital will pay half of their cobra insurance during May 2014.