Last week, the Seattle Times reported that Swedish Medical Center may be facing layoffs as the company continues to lose $250,000 per day. The institution has about 11,000 employees at several campuses across the region, including the hospital on Cherry Hill.
The announcement comes months after Swedish and the Catholic-affiliated Providence Health & Services “joined forces” in a deal that would keep Swedish facilities operating under their current names.
From the Times:
Swedish Medical Center delivered some grim news to employees Monday: Swedish is losing $250,000 a day and likely will have to lay off workers.
“We all know this is not a sustainable situation, and we need to respond quickly and thoughtfully to correct this trend,” Swedish CEO Kevin Brown said in a memo to physicians and volunteers.
Brown said patient volumes and revenues are significantly lower than Swedish had projected.
In a Q&A to staff, Swedish spokeswoman Melissa Tizon addressed the question of layoffs.
“Given the extent of our financial losses, we will need to make some very difficult decisions in the next few weeks,” Tizon said. “We will need to reduce all of our costs, and that will likely include reducing staffing to match current volumes.”
The losses, Brown said, are a continuation of a trend Swedish saw in late 2011, when it experienced three months of consecutive loss. In January and February of this year alone, it has had an operating loss of $16 million, he said.