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would make that decision to go with Accretive even if the economy was flush and burgeoning, Wilde said.
Because of state mandated earthquake requirements that forces hospitals to build or retrofit, Community Memorial is also embarking on a $300 million construction project for a new hospital.
keep their jobs for six months and the hospital will work to transfer them to other positions in the Community Memorial Health System, which also includes clinics and Ojai Valley Community Hospital.
jobs left vacant because of the hospital about yearlong hiring freeze in many departments. Training will be offered to workers interested in nursing support jobs.
Community Memorial and the Ojai hospital billing and collections will be farmed out to a Chicago based company called Accretive Health. The firm will be paid about $2 million a year a significant savings over the hospital current operations, Glyer said. Community Memorial billing will be handled by an Accretive office in Kalamazoo, Mich.
Community Memorial Hospital in Ventura will eliminate 56 jobs in its business department but still try to avoid layoffs by outsourcing its billing and collections work, officials announced Wednesday.
real question is what took them so long to come to that conclusion, he said of Community Memorial.
Jim Lott, executive vice president of the Hospital Association of Southern California, said hospitals have been upgrading or outsourcing at least some aspects of billing and collections since the 1980s. They do it because outside companies can do the job better and for less money.
Though officials of the hospital say the changes in billing and collections aren driven by the recession, the hospital is one of many that has been hit by the economy. Admissions have fallen and the hospital has also suffered losses in financial investments. Its staff has been reduced by about 50 people over the past year through not filling vacant positions.
A worker in Community Memorial business department referred a phone call to the hospital vice president of marketing and development. Another worker wanted to talk to a lawyer before talking about the cuts and then later said people were angry and skeptical about their chances of staying at the health system.
Affected workers were told of the cuts in a 90 minute meeting Tuesday. They Omega Brown Leather Strap
Wilde said some of the workers will Omega Seamaster Aqua Terra Xxl be retained in a down scaled business office. Others will be transferred to Omega Watches Rose Gold
The hospital has long considered farming out the duties to a company geared specifically to handle the complexities of private and government insurance, Glyer said.
The cutbacks are driven not by the recession but by the need for the hospital to collect more of the money it is owed, said Dave Glyer, the hospital chief financial officer.
placed and therefore to have zero layoffs, said Community Memorial Chief Executive Officer Gary Wilde, adding the hospital will also try to help people interested in jobs outside of the health system.
Community Memorial Hospital in Ventura cutting 56 positions
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Glyer said the change could increase revenue by $4 million a year or more. Accretive has more resources, including electronic connections to major insurance companies, allowing it to react immediately when part of a hospital submitted bill is underpaid. The company also has more people to collect money when a patient doesn pay, for example, a $20 bill for co insurance, Glyer said.
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