Hartford HealthCare to eliminate 418 positions

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HARTFORD — Hartford HealthCare announced that it would eliminate the 418 positions, the equivalent of 335 full-time jobs.

The organization blamed decreased revenue due to lower federal reimbursements and Medicaid payment reductions from the state of Connecticut as well as increased state taxes on hospitals.

“Despite our best efforts to reduce costs and increase revenues this year, Hartford HealthCare faces additional Medicaid cuts, bringing our total Medicaid payment reductions from the State of Connecticut to more than $100 million over five years,” said Jeffrey A. Flaks, executive vice president and chief operating officer, in a letter to all staff on Wednesday. “The magnitude of these cuts makes our model unsustainable going forward.”

Hartford HealthCare said they were reviewing other changes consolidations and reductions to some programs and services. Through various cost reductions with vendors, Hartford HealthCare said they will spend about $40 million less for products and services in the coming fiscal year.

Yale-New Haven Hospital also confirmed Wednesday that it will be closing 2 clinics, affecting 31 jobs because of Medicaid cuts and tax increases.

Bruce Cummings, president and CEO of Lawrence and Memorial Hospital in New London, said they are also taking a hard look at their numbers for similar reasons.

"Next year, we are looking at $9.5 million dollars of tax money that we will not see, that goes out the door that's being redirected into the general fund," Cummings told Fox CT in an interview last week.

Devon Puglia, the director of media relations for Gov. Dan Malloy's office, released the following statement on the layoff news:

This is a challenging budget year where difficult, often unpopular, choices were absolutely necessary. As the state has to find new efficiencies to meet the challenging budget, the hospital industry will also have to find efficiencies to meet the changing industry. With that said, last year, the hospital industry did have one of its most profitable and lucrative years.  The bottom line is with this budget, we are working to transform Connecticut's transportation system and provide property tax relief for middle class families, and we're ensuring that those who should pay their fair share contribute to Connecticut and its long-term future.