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MercyOne hospital in Mason City laying off 34 employees
It’s part of ‘revenue cycle’ changes at parent Trinity Health affecting more than 140 workers in Iowa
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MercyOne North Iowa Medical Center in Mason City will lay off 34 employees March 17, according to the state's Worker Adjustment and Retraining Notification online log.
The WARN Act requires employers with 100 or more employees to give 60 calendar days' written notice when there is a plant closing or mass layoff.
The MercyOne North Iowa Medical Center layoffs were posted Jan. 26, in addition to the layoff of 67 workers at MercyOne Des Moines Medical Center.
On Jan. 23, the closing of the MercyOne Ottumwa Family and Internal Medicine clinic on Feb. 27 was posted. That closure will result in the loss of 40 jobs.
MercyOne is part of Livonia, Mich.-based Trinity Health, which describes itself on the MercyOne website as “one of the largest Catholic not-for-profit health systems.” The health system has locations throughout Iowa, including in Cedar Falls, Waterloo, Dubuque, Dyersville, Elkader and Oelwein.
The Iowa layoffs and closings are part of a larger Trinity Health revenue cycle transition.
"Like other health care providers across the country, we are navigating significant challenges, including low reimbursement that doesn’t cover the cost of care, critical clinical staffing shortages, and the escalating costs of drugs, supplies, equipment, and technology," according to a Trinity Health statement. "The rising cost of charity care and caring for underinsured and uninsured patients presents further strain on health care providers.“
Recent and future government funding policy changes are projected to reduce Trinity Health’s annual revenue by $1.5 billion, and more reductions in coverage, payment and access to Medicaid and Medicare are being considered by the federal government, according to the statement.
“After careful and thoughtful analysis, certain non-patient-facing-revenue cycle functions will be transitioned to a partner. As a result, positions within the revenue cycle department will be reduced by 10.5% across Trinity Health’s national footprint," the statement said.
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