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 this week in a memo to employees.
Spokeswoman Deborah Shawver said Thursday that Providence’s Lacey-based chemical dependency center will continue to offer in-patient and outpatient services.
The completed work-force reduction plan for Providence Health & Services, Southwest Washington, 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.
Although the organization has settled on 100 layoffs for the region it serves, it still hasn’t determined how many of those layoffs will take place at Providence St. Peter Hospital, Shawver said. Providence Health & Services, Southwest Washington, employs 3,539 people, of which 2,366 are employed by Providence St. Peter Hospital.
Shawver said the number of people who agreed to leave voluntarily helped to reduce 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,” Coluccio said. “We greatly appreciate their many contributions and invaluable service.”
Providence Health & Services took the cost-cutting steps as a result of cuts to Medicaid and other state-funded health care programs. Shawver would not disclose the organization’s total budget for 2011.
The organization announced the voluntary separation package in a letter to employees last month.
They had until Aug. 8 to accept the package, which includes a lump-sum bonus based on length of employment.
Capital Medical Center, too, has responded to state budget cuts, Chief Executive Jim Geist has said.
A hiring freeze is in effect for some departments, and hours have been reduced for some positions.
The hospital also has cut back on some elective orientation and education programs, but hasn’t had to cut jobs, he said. “We will continue to evaluate opportunities to manage our hospital relative to the new reimbursement realities with Medicaid and Medicare,” Geist said Thursday.
Capital Medical Center employs about 475 people.
Rolf Boone: 360-754-5403 rboone@theolympian.com www.theolympian.com/bizblog
