Rhode Island Hospital, citing a looming "significant deficit," confirmed on Tuesday that it is eliminating nearly 200 positions and shutting down an early intervention program for developmentally disabled children.
The hospital announced on Tuesday that it plans to notify the full-time and part-time employees, including managers and staff-level positions, that their jobs are being eliminated.
The hospital said it expects that "most of the affected employees will eventually secure other positions" within the Lifespan health system.
"Rhode Island Hospital faces costs that are rising faster than reimbursement rates and other revenue sources," according to the statement. "The hospital expects a significant deficit this fiscal year, which ends September 30. The jobs reduction will result in significant savings in overtime and other contracted services expenses, with savings equivalent to approximately 100 full-time positions."
Some of the positions being eliminated were already left vacant in anticipation of the need to reduce the work force.
Seventeen positions will be lost from shutting down an early intervention program of Hasbro Children's Hospital, part of the hospital's Children's Neurodevelopment Center since 2000. Among 10 programs of its kind in the state, it provide services to children up to 3 years old, who have, or who are at risk for, developmental problems.
The program has "experienced a continuous decline in revenues in recent years," according to the hospital.
"It was an extremely difficult decision, one made only after thoughtful discussions internally and an evaluation of the scope and breadth of services already provided by agencies across Rhode Island," Margaret Van Bree, hospital president, said in a statement.
Van Bree said the early intervention staff will work with the state to help families find alternative programs. Currently, the hospital works with 300 families.
"To further close the financial gap, Rhode Island Hospital also implemented a series of actions to reduce costs, identify new sources of revenue, restructure care delivery and provide greater efficiency and effectiveness," according to the statement.