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OUR VIEW: Painful but prudent move at RMH: Rising costs, declining patient volume forced job cuts at hospital

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November 1, 2009

The staff reduction at Robinson Memorial Hospital, a painful course of action not only for the individuals affected but for the hospital overall, appears to have been driven by a number of factors largely beyond the control of the hospital.

The economic downturn has taken a toll on patient volume nationwide and Robinson Memorial has been no exception. The cost of uncompensated care at the hospital also has risen dramatically, to nearly $9 million this year. That's nearly double what it was just two years ago.

The hospital also has been forced to swallow a charge of nearly $3.5 million in a state hospital franchise tax, with no "make whole" provision from the state, as had been assumed. That's likely to become a permanent, fixed cost.

Together, those factors have resulted in a projected net loss of $832,000 for 2009. That compares with the past two years, when Robinson Memorial saw annual gains of about $7 million. The financial picture for 2010 is equally challenging.

No employer wants to put people out of work, especially in a recession, but given its revenue picture, it appears that Robinson Memorial had no choice but to proceed with eliminating 95 full-time equivalent positions. The blow is cushioned somewhat by a decision to leave 54 unfilled positions vacant, but that's small comfort for those losing their jobs.

As the county's second largest employer, after Kent State University, Robinson Memorial is an important player in the local economy. The challenges it faces are shared by many other local employers on a smaller scale.

Unlike some private employers, however, a hospital's cost-saving alternatives are limited. Curbing basic medical service is not an option when your mission is to provide health care, which is why the staff reduction attempted to avoid any cuts that would directly impact bedside care staff.

Portage County is fortunate to have a local, county-owned hospital that provides residents with top-notch, easily accessible medical care. The services Robinson Memorial provides at its Ravenna campus as well as satellite operations throughout the county are vital to the well-being of this area. In order to remain in business, however, Robinson Memorial must be able to meet its financial obligations.

The action undertaken by Robinson Memorial reflects a willingness to address budget realities -- and accept the pain that will ensue -- rather than wait until the situation worsened, making more drastic cuts necessary.

Comprehensive health care reform remains a vital national priority, but what will emerge from the ongoing Capitol Hill remains unclear. Faced with rising costs and declining revenues, Robinson Memorial couldn't afford to wait for an answer for Washington. What undoubtedly was an unpleasant decision to make was the responsible thing to do.




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    Posted by thinblueline November 1, 2009
What about the patients that are going to suffer for lack of prompt & effective care? You should think of them first and not the reputation or image of RMH. The RC is just as much to blame for the the hype with Colecchi in building this hospital into some kind of temple with their marble buildings. The amatures running this hospital and this county only have themselves to blame for the waste of taxpayer dollars to glorify their images of themselves as the savior for this community.
Start by remembering who pays your salaries and builds your castles!

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