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Sutter will implement cutback of 12 percent of staff next month

SANTA ROSA, June 23, 2008 – Sutter Medical Center of Santa Rosa said today it will cut the positions or hours of 128 employees to make up for a reduction in use of the hospital by approximately 40 percent since 2003.

The health organization said the changes will take effect Aug. 29 and will result in a reduction of approximately 12 percent of Sutter Santa Rosa staff.

“These types of decisions are never easy for any organization,” said Mike Cohill, Sutter Medical Center CEO. Sutter Medical Center of Santa Rosa “has the most dedicated professionals who give their very best each and every day. While difficult, talented staff will meet this challenge as we chart a new course with a smaller operation that matches our patient demand while providing the best quality care to our community,” he said.

The hospital said it will continue to fulfill its obligation under the Health Care Access Agreement with the county, but will also “evaluate our long-term options.”

Sutter Medical Center of Santa Rosa has sustained more than $88 million in losses during the last six years, currently losing about $1.5 million to $2 million per month.

Sutter said the losses stem from the growing presence of Kaiser Permanente, the hospital’s disproportionate share of the uninsured, poor Medi-Cal reimbursements and “duplication of services by hospitals in the area.”