MASON CITY, Iowa – Trinity Health is confirming layoffs at three MercyOne locations in Iowa.
The company is laying off 34 employees at MercyOne North Iowa Medical Center and 67 employees at MercyOne Des Moines Medical Center. Those will take place by March 17. 40 employees will also be laid off at MercyOne in Ottumwa by February 27.
Trinity Health spokesman Todd Mizener issued the following statement on behalf of the company:
“This decision is a proactive step and part of our broader initiatives to reposition our ministry and work to ensure long-term sustainability and future growth. 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. The rising cost of charity care and caring for underinsured and uninsured patients presents further strain on health care providers.
“We have a responsibility to remain operationally and financially sustainable. That requires us to consider new ways to reduce costs while sustaining the safe, accessible and affordable high-quality care our communities depend on. The recent and future government funding policy changes are projected to reduce Trinity Health’s annual revenue by $1.5 billion. Additionally, more reductions in coverage, payment and access to Medicaid and Medicare are being considered by the federal government. It is not possible to simply absorb such a significant financial impact without making thoughtful, forward-thinking changes.
“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.
“While we are confident this is a necessary, though painful action, we also recognize the very real impact on colleagues whose roles are affected by job elimination. Supporting these colleagues through this transition with care and respect is our priority. We are grateful for the contributions of every colleague.
“Guided by our Mission and Values, we will continue making decisions that support and strengthen our Ministry to provide access to safe, high-quality and compassionate care our communities need today, and for generations to come.”