By JIMMY LAWTON

OGDENSBURG – Claxton-Hepburn Medical Center CEO Nate Howell says Tuesday’s announcement of plans to eliminate 25 positions at the hospital will ensure the facility can expand into areas that are cost effective.

Howell said making cuts is never easy, but as the health care industry moves toward outpatient care, the hospital has to cut in some areas so that it can invest in others.

“The decision to reduce staff is one of the most difficult any leadership team must make,” Howell said. “The plan allows us to reallocate staff to be more in line with patient demands.”

Howell said the multi-faceted restructuring plan, which included a reduction in the workforce, will save the hospital about $2 million annually.

The overall plan includes “management restructuring, adjustments to physician practice management, closure of its acute rehabilitation unit, and a minimal reduction in its workforce,” according to a press release from the hospital Tuesday.

The plan eliminated positions through layoffs and reassignments. It also included the closure of the acute inpatient rehabilitation center. Howell said the facility was required to have two nurses on staff due to state codes, but often had only two patients.

“That’s not sustainable,” he said.

Howell said a change in how insurance pays for care has shifted with a focus on preventative and impatient care. He said the hospital has to meet that new need.

Howell said the majority of cuts hit the management level and that the cuts are not expected to impact patient care.

“CHMC has a long standing record of providing top notch care to Ogdensburg and the surrounding communities,” said CHMC President and CEO Nate Howell. “Our goal is to ensure that we are structured in a way that will allow us to continue to do so for years to come.”

With annual operating revenue of approximately $95 million, Howell said it must balance revenues with expenses.

“Like hospitals nationwide, cuts to reimbursement require the hospital to do more with less,” Howell explained.

The plan is expected to allow expansion of core services such as cancer care and primary care, as well as continue collaborations with other hospitals.

Howell said that despite these current challenges, Claxton-Hepburn is well positioned for the future. “Our hospital is recognized at both the state and national levels for its successes in patient care. This responsibility often requires difficult decisions to be made to ensure we are here for future generations,” Howell said.

Established in 1886, Claxton-Hepburn Medical Center employs approximately 700 full- and part-time people with an annual payroll of $54.7 million.