Providence finalizes restructuring, will result in 100 layoffs

Rolf Boone/The Business Blog • Published August 25, 2011

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The parent organization to Providence St. Peter Hospital has finalized its work force reduction plans, which will cut staff and close two clinical programs as part of an effort to close a $28 million gap in its 2011 budget.

Set to close in the next 30 to 90 days are a 29-bed skilled nursing facility at Providence Centralia Hospital and outpatient chemical dependency treatment centers in Hoquiam, Shelton and Centralia, regional Chief Executive Medrice Coluccio announced in another memo to employees.

Providence Health & Services, Southwest Washington's finalized work force reduction plan will result in about 100 layoffs after 115 people agreed to leave voluntarily. The 100 layoffs include cuts at the skilled nursing facility and at the chemical dependency centers.

Spokeswoman Deborah Shawver said the number of people who agreed to leave voluntarily helped to lessen the need for layoffs. Those who were let go will be offered severance pay, "including continuation of benefits for a period of time," Coluccio said in her memo. Most people will leave in early September, although some may stay longer to provide patient care.

"The people who are leaving Providence will be missed," she said. "We greatly appreciate their many contributions and invaluable service."

For more on this story, see Friday's Olympian.

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