McAlester News-Capital, McAlester, OK

Breaking News

May 1, 2013

McAlester hospital CEO plans to cut costs by $4 million by July

McALESTER — McAlester Regional Health Center CEO David Keith told the hospital board Wednesday he plans to enact a series of cost-savings measures over the next two months.

Keith spoke of his intentions during his CEO report when the McAlester Regional Health Care Authority board met in regular session at the McAlester Regional Health Center  late Wednesday afternoon.

“I will be reducing FTEs,” Keith said, referring to full-time employees. “I haven’t decided where those reductions will be.”

Keith went on to say that he knows the hospital has too much management.

Some FTEs may be reduced by attrition; some employees could be reassigned, Keith told the board.

Also, every contract will be scrutinized, looking for ways to save money, he said.

“By July 1, I will have a plan to reduce $4 million in costs,” Keith told the board, which consists of citizens volunteers and several physicians.

Earlier, MRHC Authority Finance Committee Chairman Evans McBride questioned why the hospital wasn’t showing more of a profit, based on things including census numbers — the number of patients in the hospital at a given time.

Afterwards, the New-Capital spoke with Keith about his intentions.

“We’re not in a crisis mode,” Keith said. “We’re profitable.”

However, Keith said he wanted to start taking steps to cut costs now “so we can avoid taking Draconian cuts when it’s too late to recover.”

Keith blamed part of the situation he says the hospital is facing on the high costs of hiring temporary agency nurses  to handle some staffing challenges, as well as the pending financial realities the hospital will face because of provisions in the Affordable Care Health Care Act — also known as Obamacare among some sectors of the public.

“Affordable Care is going to take $3 million a year from us,” Keith said. That’s because the government will reduce Medicare reimbursements by 2 percent, he said.

The recent sequestration federal budget cuts reduced Medicare reimbursements by another 2 percent, Keith said.

“And we didn’t get the Medicaid expansion,” Keith said, a reference to Oklahoma Gov. Mary Fallin’s rejection of the federal funds offered to states that accepted the Medicaid expansion plan in the Affordable Care Act.

Keith said he expected to have some of his decisions made over the next two-to-three weeks regarding the cost-cutting measures .

Contact James Beaty at jbeaty@mcalesternews.com.

 

For more on this story, see the print or electronic editions of the McAlester News-Capital. Click here for print edition home delivery or click here to see the Smart Edition for your computer, tablet, e-reader or smartphone.

1
Text Only | Photo Reprints
Breaking News
Seasonal Content
AP Video
Couple Channel Grief Into Soldiers' Retreat WWI Aviation Still Alive at Aerodrome in NY Raw: Rescuers at Taiwan Explosion Scene Raw: Woman Who Faced Death Over Faith in N.H. Clinton Before 9-11: Could Have Killed Bin Laden Netanyahu Vows to Destroy Hamas Tunnels Obama Slams Republicans Over Lawsuit House Leaders Trade Blame for Inaction Malaysian PM: Stop Fighting in Ukraine Cantor Warns of Instability, Terror in Farewell Ravens' Ray Rice: 'I Made a Huge Mistake' Florida Panther Rebound Upsets Ranchers Small Plane Crash in San Diego Parking Lot Busy Franco's Not Afraid of Overexposure Fighting Blocks Access to Ukraine Crash Site Dangerous Bacteria Kills One in Florida Workers Dig for Survivors After India Landslide Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN
NDN Video
Famous Internet Cats Help Big Cause With Viral Video Raw: Obama Gets Hug From Special Olympian Snoop Dogg Narrating Animal Footage Is Perfect Tigers Acquire David Price - @TheBuzzeronFOX Russell Brand Slams Sean Hannity Over Gaza Conflict Segment Chapter Two: Composing for a film in retirement Woman's Dive Goes Terribly Wrong Brian Williams Reports on Daughter Allison Williams' 'Peter Pan' Casting News Did Jimmy Fallon Look Up Heidi Klum's Dress? What Drama? Miranda Kerr Poses Topless Plane crashes in San Diego Costco parking lot Justin Bieber Takes To Instagram To Diss Orlando Bloom You Won't Believe the Celeb Cameos in "Sharknado 2" Pitch Invading Morons Cause Chaos - @TheBuzzeronFOX Orlando Bloom 'Takes a Swing' at Justin Bieber In Ibiza Sadie Doesn't Want Her Brother to Grow Up "Maxim" Hotness! See Jessica Alba's Sizzling Spread Two women barely avoid being hit by train Broken Water Main Floods UCLA Orlando Bloom and Justin Bieber Reportedly Came To Blows In Ibiza
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.