Medical Center of Central Georgia's Budget Woes

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Updated: Fri, 27 Sep 2013 09:14:59 EST

The Medical Center of Central Georgia laid off 50 employees last week according to its parent company Central Georgia Health Systems Thursday as a way to cut costs as the hospital moves into a new fiscal year starting October 1.

In the last few months, the hospital has focused on reductions in all areas after projecting a nearly $25 million deficit in the 2013 budget. After reevaluating hospital operations, renegotiating contracts with services and laying off employees, the hospital is likely to end the year with only a $6 million deficit. That will now transfer into the new budget and the hospital already projects a $30 million deficit.

"In total we've reduced expenses over $30 million for the coming year in order to be able to maintain an operating margin a little over 1 percent which is not where we want to be but that's when the real turnaround will come, is in the coming year," Chief Financial Officer, Rhonda Perry said.

The shortfall comes from changes in the healthcare system and a decrease in demand of hospital services

Perry said more cuts are expected in the upcoming year but the last options are layoffs and salary adjustments. She adds working with vendors already helped reduce costs and it will only continue.

"Our hope is that we will rebase and adjust and as there are vacancies as we look at processes and changes, those will become an ordinary course of business so that we would minimize any impact going forward,” she said.

Employees PAL days (pay annual leave) which are paid sick and vacation days were suspended for months. However, starting in October, they will return to employees.

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