St. Claire HealthCare is implementing a cost savings plan across its entire health system that includes a 6.4% reduction in current operating expenses, hospital officials said in a press release issued June 5.
St. Claire cites declining state and federal reimbursements and higher cost of care as the need to make financial cuts and invest strategically in their future.
“St. Claire, like many other healthcare systems within the state and across the nation, has been operating under significant financial pressures for many years,” said Donald H. Lloyd, II, St. Claire HealthCare President/CEO. “St. Claire is now at the point that we must reduce the cost of care so we can continue to achieve our strategic objectives, remain financially stable, and grow well into the future. With careful reductions and appropriate investments, we will be able to bring greater value to our patients and will continue to be a strong, quality healthcare system serving the health and educational needs of the people of Eastern Kentucky for many years to come.”
“St. Claire is currently evaluating every aspect of our operations and in doing so will be forced to make some very difficult decisions while keeping our mission as our highest priority,” says Sister Marla Monahan, SND, St. Claire HealthCare Board of Directors’ Chair.
St. Claire’s targeted cost reduction plan focuses on staffing levels, purchasing controls, and a re-evaluation of all contractual management services. Though cost reduction is a critical priority, St. Claire’s efforts will not depend solely on cost reduction. “To ensure our viability, St. Claire will have to continue to make strategic investments in the areas that allow us to transform the way we deliver care,” says Lloyd.
St. Claire’s cost savings plan will be fully implemented during the month of June and will continue on an ongoing basis as necessary.
St. Claire HealthCare is an integrated healthcare system that provides health and medical education to a population of over 160,000. St. Claire is the largest employer in the region with over 1,300 staff members, including more than 100 medical providers representing 32 medical specialties. St. Claire’s health system includes the largest rural hospital in Northeastern Kentucky with 159 beds, 7 family medicine locations located within 5 counties, a multi-specialty medical pavilion, an outpatient center, homecare services and operates 3 retail services which includes family medical supply, pharmacy, and aesthetics.