Facing state cuts, Sunnyside hospital lays off 9, reduces pay

SUNNYSIDE, Wash. -- Sunnyside Community Hospital has laid off nine employees and reduced pay for most staff in anticipation of state reimbursement cuts.

Officials at the nonprofit hospital cut $1.2 million from its 2012 budget in preparation for lower state reimbursements faced by 38 designated rural hospitals across the state.

Hospitals in remote locations -- called critical access hospitals -- are bracing for change that may come through House Bill 2130, a legislative proposal that would eliminate cost-based reimbursements for Medicaid patients.

Some have laid off workers already. Others have made contingency plans calling for the elimination of auxiliary services, such as ambulances or assisted living centers.

Sunnyside's cuts follow similar moves made by PMH Medical Center in Prosser a few months ago.

Sunnyside's laid off nine employees were not directly involved with patient care, such as housekeeping, volunteer services and laboratory services, said Tom Lathen, a hospital spokesman.

Two other positions were eliminated. One employee transferred to another vacancy in the emergency department, while another resigned and will not be replaced, Lathen said.

Also, the hospital imposed a 4.5 percent pay cut for all 400 employees except registered nurses. The nurses, the only employees represented by a union, had earlier agreed to pay limits during contract negotiations, Lathen said.

The hospital also put a freeze on all contributions to employee retirement programs for all employees, including the nurses.

In November, Prosser's public PMH Medical Center laid off 13 employees and eliminated two vacant positions. The layoffs included four nurses in hospital-owned clinics and nine staff from positions not directly tied to patient care.

* Ross Courtney can be reached at 509-930-8798 or rcourtney@yakimaherald.com.