Huntington, W.Va. — Cabell Huntington Hospital announced Tuesday it is reducing its workforce by 40 employees as part of a comprehensive plan to reduce expenses, sustain rapid growth and preserve its commitment to caring for the community.

The hospital implemented the changes in response to the recent economic downturn, unstable financial markets, declining reimbursement and rising costs.

Most of the affected employees are supervisory and management personnel from a broad range of hospital departments. None are involved in direct patient care.

“Cabell Huntington Hospital continues to experience outstanding growth in patient volumes, revenues, physicians and services,” said Brent A. Marsteller, president and chief executive officer. “Consequently, we’re now experiencing some growing pains that require us to take this difficult action to reduce our expense structure, so our hospital can continue to respond aggressively to future growth opportunities and meet the growing healthcare needs of our community and region.”

Marsteller said the recent national economic downturn has resulted in a loss of investment income for Cabell Huntington as well as an increase in the amount of uncompensated and charity care provided by the hospital.

Additionally, he said the organization is facing rising costs for medical supplies and pharmaceuticals, double digit increases in employee benefit costs and declining or fixed reimbursement from all payor sources.

All of the employees affected by the job reduction will receive severance packages and job placement assistance, according to Marsteller.

“Our hearts go out to these employees and their family members, but these changes are necessary for our hospital to remain strongly positioned to fulfill its mission of caring for the community and providing leading-edge medical care.”

In addition to the job reductions, Marsteller said Cabell Huntington Hospital has implemented a wide-ranging plan to reduce non-salary expenses and increase efficiency across the organization.

In fiscal year 2008, Cabell Huntington Hospital opened its

new North Patient Tower and assumed more than $100 million in new debt.

That same year, the hospital provided the community with more than $45

million worth of uncompensated and charity care due to a growing number

of people who have become uninsured and underinsured.

Additionally, the hospital continues to provide a wide range of critical

“safety net” services to the community, such as trauma care, burn

intensive care, pediatric intensive care and neonatal intensive care –

services that are often operated at a loss, but continue to be offered

because of their importance to the community and region.

Marsteller said it is vital for Cabell Huntington to continue being

financially strong in order to provide these necessary services.