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Healthcare changes impact Faxton St. Luke’s Healthcare: 90 full-time positions cut

By WKTV News

UTICA, N.Y. (WKTV) - Sixteen employees at Faxton St. Luke's Healthcare have been laid off, and 90 positions are being cut as the federal government continues to reduce payments for patient and resident care as part of the health care overhaul.

The 16 employees were laid off Wednesday. The positions include supervisory and nonsupervisory jobs that are both clinical and nonclinical.

Eligible employees have been offered a severance package, according to a statement from the hospital.

Officials say hospitals and health care systems throughout New York State are facing financial challenges as the federal government continues reductions in Medicare and Medicaid payments in a number of health care services.

"A layoff is always our last course of action and we have worked diligently throughout the year to try to maintain all jobs,” said Scott H. Perra, president/CEO of Faxton St. Luke’s Healthcare.

“The healthcare arena is in constant change. We have seen patients migrate to free-standing outpatient centers as well as a decrease in the number of inpatients in the hospital setting," he said. "Those changes, when combined with the declining reimbursement, have resulted in a $4.3 million dollar year-to-date operating loss for our hospital. As we make the changes required to align with volume shifts to the outpatient setting, it has an impact in our overall service model and impacts certain jobs.”

The hospital system is comprised of FSLH, St. Luke’s Home, Visiting Nurse Association of Utica and Oneida County, Senior Network Health and Mohawk Valley Home Care.

The system employees 2,850 people.

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