CORTEZ — Management for a southwestern Colorado hospital say 40 employees were laid off as part of a reorganization plan to bolster the Cortez hospital’s struggling financial position and improve efficiencies.
The Cortez Journal reports that the Tuesday layoffs come after Southwest Memorial Hospital officials told the Montezuma County Board of Commissioners that a previous plan to boost revenues through a Medicaid rebilling effort had failed to produce results.
Tony Sudduth, the interim CEO for the Southwest Health System, said in a statement the reduction in staff was necessary.
He says wage savings from the layoffs are estimated to be $5.4 million per year.
The layoffs are not expected to impact medical services for patients and no programs have been cut.
