OXNARD : St. John’s Hospital Considers Layoffs

Although poised to open a new hospital next month, St. John’s Regional Medical Center in Oxnard may have to lay off employees to reduce a projected $5-million annual deficit, a hospital spokeswoman said Tuesday.

“They’re identifying areas to make some cutbacks and one of the areas they’re looking at is layoffs,” said spokeswoman Rita Schumacher. “They’re looking at a number of other options, but they haven’t disclosed what those options are.”

In a memorandum sent last Friday to the hospital’s 1,400 employees, President Dan Herlinger discussed the need to reduce the facility’s $50-million operating budget by 10%. “I think that people are concerned, but I don’t think that anybody is surprised,” Schumacher said of the staff’s morale. “I think that what we’re looking at here is something that is being faced by hospitals not only in Ventura County, but nationwide. There are factors beyond our control that are causing this.”

Schumacher blamed the hospital’s deficit on the sluggish economy, noting that some patients are underinsured because of the low employment rate. Also, she said, insurance companies have reduced reimbursement to hospitals and are pressuring them to keep tighter controls on the duration of patient stays.

Schumacher said the deficit will not affect the planned merger with Pleasant Valley Hospital in Camarillo, which is scheduled to be completed in early 1993.

The merger would “create a stronger organization,” Schumacher said. “If you cut back and you reduce duplications and you consolidate, you’re going to be more efficient.”

The projected budget shortfall has not prompted second thoughts by Pleasant Valley Hospital officials, said Cheryl Rudie, director of planning.

“The reason why we want to merge with St. John’s is the financial strength of their system, Healthcare West, and that is not compromised at all,” Rudie said. “I don’t think it’s having any effect at all on the merger.”

St. John’s is one of 13 hospitals owned and operated by the San Francisco-based chain, Catholic Healthcare West.