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MeritCare laying off 300 employees

Full details will be coming Thursday

Published Tuesday, June 24, 2008

MeritCare is poising for substantial layoffs.

About 300 MeritCare employees will be affected by the reduction, the Fargo-based health care provider will announce Thursday.

Of these, 75 to 100 associates will lose their jobs, other positions will have hours reduced, and some positions will not be re-filled. Employees have not yet been notified.

MeritCare officials stated Monday the cuts are not a result of a downfall in business. MeritCare is seeing an eight to nine percent increase in patient volume each year. Rather, reductions are necessary because MeritCare needs to change its cost structure and work processes.

MeritCare officials said in May that the company didn’t expect to be reducing its workforce.

“That is the truth based on the information that we had at the time,” MeritCare officials stated Monday.

However, Blue Cross Blue Shield of North Dakota recently announced that it would be withholding 2.5 percent of MeritCare’s reimbursement from Aug. 1 to Dec. 31. Also, Medicare cuts to physician compensation of 10.6 percent are expected to begin July 1.

MeritCare clinics in this area are located in New York Mills, Pelican Rapids, Perham and Ottertail.

The Fergus Falls Medical Group does send referrals to MeritCare specialists.

Comments

The Daily Journal is happy to host community conversations about news and life in Fergus Falls and the surrounding area. As hosts, we expect guests will show respect for each other. That means we don't threaten or defame each other, and we keep conversations free of personal attacks. Witty is great. Abusive is not. If you think a post violates these standards, don't escalate the situation. Instead, flag the comment to alert us. We'll take action if necessary. It's not hard. This should be a place where people want to read and contribute -- a place for spirited exchanges of opinion. So those who persist with racist, defamatory or abusive postings risk losing the privilege to post at all.

Posted by Newshound (anonymous) on June 24, 2008 at 2:14 p.m. (Suggest removal)

Hold it! Patient load is going up nearly ten-percent but we are going to lay off employees so we can reconfigure the way we do business.
Way back in May....that was about 30-days ago, they didn't anticipate letting people go. Now......more than 30-days later, everything has changed.
Sorry, but my well tuned BS detector is ringing like a church bell.
Or I am becoming more stupid by the week.

Posted by really (anonymous) on June 24, 2008 at 2:45 p.m. (Suggest removal)

I agree with you - try working there with this going on.

Posted by Confused (anonymous) on June 24, 2008 at 5:41 p.m. (Suggest removal)

I think BCBS just gave a substancial donation to UND medical school?! Now they are witholding payment to these facilities, and Doctors. Let the trickle down effect start now, I guess

Posted by justme (anonymous) on June 24, 2008 at 7:01 p.m. (Suggest removal)

"Employees have not yet been notified"

Sounds like a corporation I would want to work for. Read the daily headlines to find out if you are still employed.

Posted by cheif (anonymous) on June 24, 2008 at 7:45 p.m. (Suggest removal)

Good thing LRH & FFMG are not apart of the merit care system

Posted by redtree (anonymous) on June 24, 2008 at 9:40 p.m. (Suggest removal)

Perhaps Meritcare shouldn't have paid $2.1 mil for the Thief River Falls Ambulance Service. Thats $2 mil more than whats its worth!!!! How much did they pay for the helicopter pad on LRH's roof?? That couldn't have been cheep! Wasteful spending on 300 employees expense.... NICE JOB MERITCARE!!

Posted by redtree (anonymous) on June 24, 2008 at 9:49 p.m. (Suggest removal)

Hey confused....
BCBS is withholding the dough because Meritcare bombed an inspection from the JCAHO Accreditation. In other words BCBS don't feel that they should pay for a service that they arn't getting from Meritcare. FYI, LRH did very well when JCAHO visited last time. Folks that are treated at LRH are very lucky to have this kind of service right here in Fergus Falls!! Good job Lake Region! Keep up the good work!

Posted by 1125thmp (anonymous) on June 24, 2008 at 10:08 p.m. (Suggest removal)

The trail of dollars will lead to the cathedral preaching the necessities of lean times, commensurate to the stock holders being happy. Its all about the dollars.

Posted by fergusfallsmom (anonymous) on June 25, 2008 at 8:10 a.m. (Suggest removal)

We have never needed a reason to go to Meritcare.. thank goodness! LRH can take care of all our needs thus far.

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