Raritan Bay evaluates all depts. for staff cuts

BY SUE M. MORGAN

Staff Writer

OLD BRIDGE — Citing difficult economic times, Raritan Bay Medical Center will reduce staff at both its divisions, located in Old Bridge and Perth Amboy.

Hospital administrators are still deciding exactly how many employees or which departments will be affected by the layoffs, which will be implemented over the next several weeks, according to Donna Sellman, director of community relations.

"No information has been released yet as far as the specific numbers or which employees," Sellman said on Tuesday.

The administration will evaluate the functions of various jobs within different departments at both divisions before deciding which jobs will be eliminated, Sellman said.

"All of the departments are being evaluated," she said.

Decreases in Medicare reimbursements and charity care payments to the hospital system have resulted in the need to reduce staff and cut operating costs, according to administrators. Medicare payments have decreased by nearly $40 million annually, according to Raritan Bay President and CEO Michael D’Agnes.

In addition, the hospital has received only $14 million in reimbursements from the state for the $21 million in charity care it provided to uninsured patients in 2002, D’Agnes explained.

Knowing that Medicare and charity care reimbursements would continue to decrease, hospital officials have been searching for ways to cut costs without compromising patient care, Sellman said.

Since January, 120 staff physician positions at both divisions have been cut from the hospitals’ payroll through either voluntary retirement or attrition, Sellman said.

"We’ve been working on [staff reduction] for the past eight or nine months," she said. "We need to take further steps."

Though they are trying to cut costs, the hospital administration wants to ensure the public that patient care at both divisions will not be compromised, Sellman noted.

"Providing quality patient care is our top priority," she said.

The ongoing nursing shortage that has left many hospitals throughout the country searching for qualified nurses has affected the Raritan Bay system as well, Sellman acknowledged.

As a result, the hospital system will continue to hire nurses in those specialties where they are essential to caring for patient s, she said.

"We’re trying not to hinder nurse recruiting where there is a need for patient care," Sellman said.

Upon hearing of the planned layoffs, Ward 4 Councilman G. Kevin Calogera expressed concern for the employees, as well as the residents who depend upon the hospital for medical care. Township officials should try to assist the hospital in any way possible, given that many local residents are employed there, Calogera noted.

"Raritan Bay has been an integral part of Old Bridge as far back as I can remember," Calogera said. "I have concerns about how this will affect our residents who work there and the community."

"If there’s anything we can do to help them, we’ll be happy to do so," he added

The Old Bridge division, located on Route 18, is one of the township’s largest employers and has contributed to the quality of life in the area, Calogera pointed out.

"They are a good employer and I hate to see them lay people off," he said.

Calogera praised D’Agnes’ leadership, which has resulted in the expansion of medical facilities and services in Old Bridge.

"I like the areas of growth I’ve seen under Mike D’Agnes," he said. "I’m sorry to see that they are having trouble, but it’s a sign of the times."

In 1998, the hospital reduced its staff by 67 positions at both divisions due to operating losses of $17.5 million that year. An additional 93 positions were eliminated through attrition that same year.