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Queen of Valley to reduce staff by 81 and close 12-bed skilled nursing facility

NAPA, Aug. 8, 2008 -- Queen of the Valley Medical Center announced plans to lay off almost 5 percent of its workforce effective later this month, or 81 employees, though a third of those will be offered positions at other facilities. Another nine employees will see reduced hours and the hospital’s 12-bed skilled nursing unit will close later this month and patients relocated to other facilities.

Hospital spokesperson Jaime Peñaherrera said the hospital was forced to make the decision due to a number of factors including rising costs and the expected Medi-Cal cuts go into effect next year, which officials calculated would amount to a $12 million budget gap.

“The economy overall is just not healthy right now. People are losing jobs, which means they lose there insurance and they are not taking care of themselves. More end up in the emergency room with no insurance and the reimbursement rates just aren’t at a rate that is sustainable for any hospital,” he said.

The hospital is the second North Bay St. Joseph Health System hospital to make reductions this year after Santa Rosa Memorial Hospital announced cuts of 212 in February as well as the closure of three programs. Sutter Medical Center of Santa Rosa has implemented a 12 percent staff cut impacting 128 positions.

Mr. Peñaherrera said despite an increasing census in acute care, revenues have continued to decrease. In addition to the cuts, 19 vacant positions will not be filled and other cost saving measures including renegotiating contracts and adjustments to supplies and other costs will continue.

The employees affected by the cuts will receive a severance package.

Mr. Peñaherrera said the cuts will not affect the plans to construct a new hospital tower, which have been in the works for several years.

“We are confident the steps we are taking will position the Queen to continue providing the highest quality of care for which our medical center is best known,” said Dennis Sisto, president and chief executive officer for Queen.