N.M. hospital shedding nearly 80 jobs; patient counts drop
GALLUP, N.M. (AP) — A Gallup hospital says it is eliminating nearly 80 jobs as it responds to reduced patient counts following a $14 million loss in 2020.
The job cuts announced Tuesday by Rehoboth McKinley Christian Health Care Services include 27 layoffs made in May when it closed WellSpring Recovery Center plus elimination of 27 currently vacant positions, the Gallup Independent reported.
Other moves include severing 18 contracts with temporary or traveling workers and laying off six local physicians and staff, the newspaper reported.
Interim CEO Don Smithburg said federal pandemic-relief funding provided “only a temporary reprieve from financial challenges that have been persistent for years.”
“For us to remain a vital resource for our region, we must do the hard work to right-size the organization to meet current patient demand,” Smithburg added.
The statement said Rehoboth McKinley’s 2020 losses resulted from the suspension of elective surgeries and non-essential services during the pandemic.
“Moving forward, hospital leadership is focused on meeting the post-pandemic needs of the community and ensuring the hospital’s long-term sustainability.”
Contract workers brought in during the pandemic because of the high volume of COVID-19 patents are no longer needed as the hospital returns to pre-pandemic patient numbers, the statement said.