Mercy to "Redeploy" Employees

Last Update: 3/12/2009 11:31 am

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MASON CITY, IA--Mercy Medical Center North Iowa is redeploying several employees as it continues to do more cost cutting.

The changes will affect employees and some patient care.

Mercy maintains it is being proactive and its first ever "mass redeployment" is a reaction to the financial illness afflicting America’s economy and health care system.

Jim FitzPatrick, Mercy President and CEO said, "As a health care industry but as a national economy the apple cart has been upset."

Mercy is dealing with a dangerous dose of red ink.

Diane Fischels, Mercy Vice President of Operations said, "In health care overall it’s very daunting."

Mercy said the stock market crash is expected to cause its pension expenses to rise 450% this year, as the value of investments drop.

There are more uninsured patients and Mercy is also expecting to receive fewer dollars from Medicare and Medicaid.

"We have to look at what we can do now to really prepare for the future and remain strong," said Fishels.

Unlike last year, the prescription does not include layoff's, instead mercy is planning its first ever redeployment of employees.

In a move to cut costs, the hospital is restructuring and eliminating 59 full and part-time positions.

Most of those people are being offered new or open positions elsewhere with Mercy.

Nearly half of them will be in Mercy's Regional Financial Services Center in Mason City. The center handles billing and is growing.

It also means changes for nearly 20 home health care patients as Mercy shrinks its coverage area from 12 counties down to Cerro Gordo and Floyd. Meanwhile, up to 10 hospice patients will be transitioned to other sites.

The Rockwell Family Clinic will close too and patients will transferred to nearby Sheffield

Fitzpatrick said the change is difficult, it is a hopeful one for most employees, "if you're helping us create more efficiencies in the organization to provide better care we're gonna take care of you."

The changes will take effect immediately for the workers who decide to accept their new assignments and they will likely require additional training.

Home health care and hospice patients will have their care transferred as soon as possible.

The changes at the Rockwell Clinic could take up to three months to complete.

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