Staff members let go from Palo Alto County Health System - KTIV News 4 Sioux City IA: News, Weather and Sports

Staff members let go from Palo Alto County Health System

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EMMETSBURG, Iowa (KTIV) -

Nineteen people were let go from the Palo Alto County Health System after the organization announced it had to reduce staff. 

The organization reduced 16 full-time positions, which impacted 19 staff members. 

In June, Palo Alto County Health System offered an early retirement package.

Six individuals accepted that offer.

In a statement, officials say the organization faced a challenging financial environment over the last several years, including reduced Medicare and Medicaid reimbursement

Official Statement:

Late last week Palo Alto County Health Systems notified several employees that their position would be reduced or eliminated. The organization reduced total staff by 16 full-time equivalent employees which impacted 19 staff members. In June Palo Alto County Health System offered an early retirement package in which 6 individuals participated.

Palo Alto County Health Systems has had a challenging financial environment in the last two years. This is a result of several key factors that include declining patient visits, reduced Medicare and Medicaid reimbursement, physician departures and increased costs.

The financial challenges confronted by Critical Access Hospitals are a concern not only in Palo Alto County but throughout the United States. Unfortunately for Palo Alto County Health Systems and the entire healthcare industry, these challenges will not lessen.

The hospital has a stable cash reserve however declining trends in revenue, the escalation of expenses, and two years of significant operating losses required difficult changes now to ensure the long-term viability of Palo Alto County Health Systems. Palo Alto Health Systems employs 263 staff members following the reduction in positions.

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