By GLYNIS HART
[email protected]
SPRINGFIELD, Vt. – Springfield Hospital announced Friday it will reduce staff by 27 positions as part of a restructuring plan. The hospital has been in financial difficulties for some time. This week, Berkshire Bank and the Vermont Agency of Human Services each advanced the hospital $800,000 to keep it from failing.
The staff reductions are part of an overall restructuring plan. Hospital administration said they must move quickly to reduce $6.5 million in annual costs. In addition to the staff cuts, beginning Feb. 24, hourly wages will decrease by 4 percent, salaries by 10 percent and some department heads will be laid off. The layoffs represent 6 percent of the workforce and are spread throughout the organization, officials said.
“These decisions are incredibly difficult, and we have worked hard to limit staffing reductions as we begin the turnaround necessary to stabilize this organization so that we can provide great care now and in the future,” said George Lamb, chair of the board for Springfield Medical Care Systems. “Though we know these changes are necessary, we deeply regret the personal impact of this reduction. We are grateful to the state, our community and the staff for their ongoing support as we manage through this challenge.”
The hospital plans to renegotiate some vendor contracts and make organizational changes in the upcoming weeks, as well as seeking legal counsel on the advisability of filing for Chapter 11 bankruptcy. It is also considering affiliation with Dartmouth Hitchcock.
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