Royal Oak (WWJ) -- Beaumont Hospital will lay off 500 workers as a result of the economic crisis hitting the United States. In addition, top executives, including the president and CEO, will take pay cuts.
The financial turnaround plan announced Monday afternoon was outlined as a way to improve the hospital's financial position by 60-million dollars next year.
Most of the layoffs are taking place at the Royal Oak hospital, but officials say the quality of patient care will not be jeopardized. Beaumont employees about 18-thousand workers. More than 200 of the jobs have already been eliminated by implementing a hiring freeze in September.
The financial turnaround plan also includes changing pay practices for overtime, premium time and time off.
Beaumont officials say there has been a dramatic change in the finances of health care due to shifts from commercial to government funding, which pay less. There also has been a slowdown in out-patient volume growth. In a statement hospital executives said some people are postponing or deciding not to have tests or other procedures done because of either insurance or other financial considerations.
Because of the financial problems, the hospital also has put plans on hold for a new ambulatory center and has delayed expansion plans at hospitals in Royal Oak and Troy.
As a way to boost revenue, officials say they will improve bill processing and cut supply costs through vender negotiations and waste. The hospital also will delay the purchases of non-critical equipment.
Officials say the turnaround plan will not affect a planned medical school announced earlier this year with Oakland University.
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