GWINNETT COUNTY, Ga. — Gwinnett County's third largest employer is cutting 160 jobs.
The CEO of Lawrenceville's Gwinnett Medical Center, which employs 4,200, told employees in a memo that the job cuts are necessary for the center to beat the economic slump.
"This has been a challenging process, but one our organization needed to undertake. The economic downturn has impacted nearly every industry and health care is no exception," said GMC CEO Phil Wolfe.
Gwinnett Medical Center Cuts 160 Jobs
Wolfe said the hospital needed to cut costs by more than $22 million for next year.
Sixty percent of the cuts will lead to current positions being eliminated, Wolfe said. He said the other 40 percent will result in vacant positions not being filled.
Wolfe said employees that do get to keep their jobs won't get merit pay raises and will have cuts to their retirement plans.
The hospital needs to make up for an expected $20 million Medicare payment gap, Wolfe said. He said GMC gets just 80 cents for every dollar spent on patient care.
Georgia Hospital Association executive vice president, Glenn Davis, said the center is not alone.
"It's a very tough climate economically for all hospitals. On average 63 percent in the state are losing money," Pearson told Channel 2's Diana Davis.
Wolfe said another factor in the cutbacks is a "bed tax" passed last session by the legislature. Pearson said the impact of the tax varies from one hospital to another.
"It was a tough economic climate for the state last year, of course. The state felt the best way to address that was to have the tax on hospitals," Pearson said.
The tax will cost the hospital more than $1 million, Wolfe said.
Wolfe did not specify which positions are being eliminated or which areas of the hospital will be affected, but he said the changes will allow the hospital to continue meet the needs of its community.
"…I am confident in the future of Gwinnett Medical Center. As we implement these changes, staying focused on delivering superior care to our patients will secure that future," Wolfe said.