UPDATE: To read more about the LaPorte Hospital cuts, click on the following links:

http://www.nwitimes.com/business/local/article_e1383d78-0ad8-5bfb-82b3-56f37ee8e591.html

http://posttrib.suntimes.com/news/5271832-418/laporte-hospital-lays-off-more-than-100-employees.html

   IU Health LaPorte Hospital President G. Thor Thordarson announced in a press release today (Monday, May 9) that 112 jobs have been cut within the past week at the health facility. Following is the press release from Thordarson: 

T. Thordarson

Thordarson

   “In the last few days, 112 of our colleagues at Indiana University Health LaPorte Hospital lost their jobs as part of a cost-savings measure. The impact on the individuals affected, and the community at large, is bound to be profound. Be assured that over the last few years, as a healthcare organization, we have taken every possible measure to reduce our operating expenses to avoid this decision. I would like to explain why such a painful and comprehensive reduction in force was necessary.

   “Most of us are aware that the cost of heath care has to be reduced. More and more people in our community are either uninsured, under-insured or have a very high deductible health plan. This decision leads to the delay in access to health care altogether for many people (up to 30% as a recent local survey showed). Those who access health care often cannot pay for it or are unable to cover the entire cost of the care.

   “At the same time, significant additional cost burdens have been imposed on the healthcare industry in the form of computerization of records, pre-authorization, and reporting requirements. These changes are intended to improve the quality of care, but they also increase administrative costs significantly. Many community hospitals, like ours, are also faced with aging buildings and infrastructure such as plumbing and electrical systems in need of upgrades and renovation.

   “The delivery of health care is changing from an inpatient to outpatient and preventive focus. This requires continued investment in new technology, equipment and infrastructure. In order to make these investments, we must lower our operating costs. Unfortunately, since approximately 40-50% of the operating expenses of a typical hospital consist of personnel costs, we have to eliminate positions as part of this cost reduction. Despite the reduction, we have taken great consideration to ensure that our nurse-to-patient ratio is not affected and continues to be one of the best in the industry.

   “I want to make it clear that IU Health LaPorte Hospital has the strength it takes to adapt to economic changes as well as healthcare reform, and these cuts are necessary to preserve that strength and be a part of this community for decades to come. The bottom line for IU Health LaPorte Hospital is that we must continue to reduce the cost of care while at the same time improve the quality of care we deliver. We will always strive to improve the health of the community by providing access to the most highly skilled physicians, the latest technology and the best, most caring personnel.”