Trios Health Lays Off 40 Employees to Help With "Financial Crisi - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Trios Health Lays Off 40 Employees to Help With "Financial Crisis"

Posted: Updated:

KENNEWICK, WA. -- A local hospital is in the middle of some serious financial trouble and announced a round of layoffs that went into effect Friday.

It's a very complicated situation, one that has been going on for months. Trios Health CEO Glen Marshall told NBC Right Now that layoffs are always a tough decision. But this situation that had to be dealt with right away. 

Some members of the hospital district board don't agree and think this situation is even worse than first thought. 

When 40 Trios Health employees walk out of the door Friday, they will now be without a job. CEO Glen Marshall says it's been a tough day. 

"They've been part of our family," Marshall said. "And so anytime you have to do something like this to a family member it's very, very difficult."

With unexpected costs added onto the new $100 million Southridge Hospital and continuing changes to health care, Marshall says the hospital has gotten into serious financial trouble. But the biggest cause for the layoffs was a bad month of business in January. One that was much worse than expected.

"That was something that we did not anticipate that our net revenue percentage would be the lowest it's been ever," Marshall said.

Not everyone thinks this was necessary, including 32-year Trios Health board member Rick Reil. 

"Do you think everything was done to avoid this?" we asked.

"No," Reil responded. No I don't think so. I think it's been bad management."

Rick tells us that Trios' finances are worse than they might be leading on. He showed us a long list of bills still unpaid. Rick claims Trios is currently $19 million behind their payments.

He says laying off these 40 workers with a plan that came out Thursday is short sighted. 

"And to do it right now is kind of a knee jerk reaction," Reil said. 

Marshall doesn't claim that the process was perfect. He does insist that this was unavoidable. 

"I think I would have liked to have done it just a little bit differently," Marshall said. "But you know, because of what was going on and what was happening, we felt like we needed to do it now. And that's why we, that's why I made the decision to do it last night. It was my decision."

The move will save Trios Health $3 million. It's yet to be seen if cuts elsewhere can help save the hospital. 

Marshall also told us Friday afternoon that the layoffs will be to any clinicians, like doctors or nurses. He said he hopes this will be the last round of layoffs for some time. 

PREVIOUS COVERAGE

--------------------------------------------------

KENNEWICK, WA - Trios Health announced plans on Thursday to let go of 40 staff members in an effort to save money. The announcement came from Trios Health CEO Glen Marshall at the monthly public board of commissioners. 

The employees will be let go, effective Friday, February 27. Trios Health employs around 1,200 people and letting go of 40 staff members is expected to save the hospital around $3 million this year.

There are several parts to the plan that's meant to decrease expenses and increase revenue for the Kennewick Public Hospital District. Not only is the staff being reduced but Marshall said they will be realigning the organizational structure, eliminating non-essential service agreements and selling District assets, among other things.

Three consultants have been retained to help the hospital with labor productivity and improve net revenues.
HD DOPPLER 6i
/