Mercy News Room

April 9, 2008

Mercy Medical Center – North Iowa Resizes

MASON CITY – Mercy Medical Center – North Iowa will be reducing staff more than first projected one month ago. The total number of jobs that will be eliminated before July 1 will reach 44 – that is 14 more than was first anticipated in March.

Many factors have affected the need for Mercy – North Iowa to reconsider staffing adjustments:

  • Further cuts in both state and federal reimbursement. Government reimbursement rates fall short of the costs to provide care for an aging population. Currently, more than 60 percent of Mercy’s revenue is through Medicare and Medicaid.
  • Lower than projected patient volume.
  • Increasing operating expenses, such as new technology, pharmaceuticals and supplies.
  • Increasing amount of unfunded care provided to uninsured and underinsured patients.

“This remains a difficult time for all of us at Mercy. Resizing is a painful process and our hearts and prayers go out to all affected associates,” said Jim FitzPatrick, President/CEO, Mercy – North Iowa. “However, Mercy must adjust its cost structure to remain viable in the current health care environment of rising costs and declining reimbursement, and to position itself to be viable into the future. With further cuts proposed in the President’s Fiscal Year 2009 budget, we must prepare now to preserve the financial resources necessary to fulfill our Mission, reinvest adequately back into our health care ministry and position Mercy to continue delivering high quality, compassionate care to the community.”

Of Mercy – North Iowa’s more than 2,700 associates, 44 positions, or 1.6 percent of the workforce, will be affected. All affected associates will receive a severance and benefits package and be placed in Mercy – North Iowa’s preferential hiring pool for six months. 

“Our first concern is for the people we serve, both patients and associates. Our decisions are based upon sustaining clinical services as evidenced by the fact that we continue to hire direct patient care givers.  We are committed to minimizing disruption and dislocation for the people in our highly valued workforce,” FitzPatrick said. 

Mercy – North Iowa Leadership Team has developed a comprehensive plan to prepare Mercy – North Iowa for the future. Mercy – North Iowa is working on growing patient volume, which includes new programs and services and expanding existing programs and services that will help increase market share.

“As we implement our plans for the future, we are being very careful to distinguish between the things that must continually change and improve, such as quality initiatives, health care technology, and customer service, and the things that must never change, such as our mission and values,” FitzPatrick said.