Bristol Hospital announced today that it is cutting 60 positions, resulting in $6.1 million in reduced costs as the hospital continues to work towards sound financial footing in challenging times.
“These decisions were extremely difficult and painful to make,” said Kurt Barwis, president and chief executive officer of Bristol Hospital and Healthcare Group, in a statement released today.
“They were made after careful consideration of alternatives and with the best interest of our patients and the community we serve. It is important to note that these changes did not include any reduction in core services, nor will they impact the safety or quality of the services we provide.”
The positions that have been eliminated include 21 of which are currently filled, 21 of which are vacant, and the remainder of which have been addressed through staffing.
Barwis provided some context for the reductions, in that Bristol Health completed the first quarter of 2024 within in $200,000 of its budget, after sizeable shortfalls for the two previous years. In fiscal years 2022, Bristol Health care sustained a system-wide operating loss of $16.5 million. In 2023, the loss was $12.8 million.
“Eight months ago,” Barwis said, “we implemented corrective actions with the goal of achieving $16.1 million in annual benefit without impacting quality, safety and access to the care we provide.”
Bristol Health achieved that goal in January, while at the same time reducing costs per adjusted discharge by 10.5 percent and reducing preventable denials by 13 percent, he said.
“All incredible accomplishments and a testament to the resolve and dedication of the Bristol Health team and to our collective commitment to our community,” he said.
Barwis attributed the financial challenges for short-term acute care hospitals to a variety of factors. A Connecticut Office of Health Strategy report released in September of 2023 for the fiscal year 2022, he said, pinpoints several of these factors.
Among the ones he cites are a 26 percent growth in salaries and wages, a 17 percent growth in the cost of drugs and supplies and uncompensated care costs increasing by 9.9 percent.
“At the same time,” he said, “we saw little to no increases in reimbursement rates resulting in overall losses for both hospitals and health systems in the state.”
He said that Bristol Health will continue on its mission, “Caring Today for Your Tomorrow” “today, tomorrow, next week and well into the future.”
“Our forward momentum, commitment, discipline and the results of rapid cycle improvement in every part of our organization confirm that we will sustain our Mission and rebuild our financial reserves,” he said.
The hospital continues to deal with challenges he said, including continuing Medicare Advantage abuse and financial pressures from increased drug and medical expenses.
“We have successfully navigated difficult times” Barwis said, referring to the coronavirus pandemic beginning in 2022, “and what we learn from them is a source of future strength.”
“We dramatically improved community perception of our organization and added much needed services to meet community needs. Most importantly, we retained and fortified our unique identity and culture.”
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