Hospital Announces Cost-Cutting Moves

In its latest effort to close a $9-million revenue gap, San Pedro Peninsula Hospital said this week it has consolidated several departments and reclassified a number of management positions and will eliminate the equivalent of 100 full-time jobs--some through layoffs--by Oct. 1.

Hospital President John Wilson said job reductions will involve attrition, reduction in hours and reclassification. He said there will be some layoffs beginning next week, but he does not know how many.

Wilson said the reorganization plan is the final segment of a program under way since January by the national accounting firm of Ernst & Whinney to stem the flow of red ink. The plan was unanimously approved by the hospital board, Wilson said.

Previous Ernst & Whinney recommendations put into effect have included 109 layoffs, reduction in work hours of 26 other employees and elimination of the family practice residency program and in-patient psychiatric services. The hospital also sold its outpatient dialysis unit to Innovative Dialysis Systems, which is continuing to operate it.