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Lodi Memorial lays off 44 employees

By Marc Lutz
News-Sentinel Staff Writer
Tuesday, November 18, 2008 1:59 PM PST

Lodi Memorial Hospital laid off 44 workers Monday, blaming a poor economy and sizable debt.

Spokeswoman Carol Farron said the hospital had planned to delay any layoffs until absolutely necessary — possibly by the beginning of 2009 — but budgetary cutbacks forced the hospital to reduce its staff.

"We weren't counting on the economy tanking so drastically," Farron said today.

She said that many of the cost-cutting measures, not just the lay-offs, would still have been made for better operating efficiency and improved patient care.

"As we got further and further along in our budget process, we knew we would have to make these decisions," she said.

One budget item that was unavoidable was the interest expense payment of $8 million for bonds that were used for seismic retrofitting. That repayment has to begin at the beginning of the year.

The lay-offs don't make sense to some former employees.

Christine Glover, of Lodi, was a medical billing representative for Lodi Memorial until a week ago. She had informed the hospital she would be resigning due to child care issues and, according to her, she was assured that she would be marked as "re-hireable" once she resolved her child care needs.

Glover said she was let go last week, before the other lay-offs, and before the date she had specified as her final day.

"The way they did it was just sickening, with the timing, the economy the way it is," Glover said. "They paid me for the week. They said they were being generous."

For more of this story, see Wednesday's News-Sentinel.

Reader Feedback

OTH wrote on Nov 21, 2008 9:18 PM:

" loadeye

Regarding LMH being overstaffed I think that may depend what department you work in. "

S W 500 wrote on Nov 19, 2008 9:41 PM:

" we all need to look at the underlying reasons why healthcare is having to shut doors! The problem is people using the ER as primary physicians. I, myself, have been paying CASH (Green dollars) for the last 15+ years for surgeries & treatments because I had no insurance. No I have it. I had to wait in line behind ILLEGAL IMMIGRANTS with NO ID, because they where in line first! Sorry. I disagree. When my head was split wide open at Urgent Care, there was no care, because they cared for the Illegals first, who PAID $0 for their care. I PAID their treatments, and had to wait. BS BS BS BS. "

concerned citizen wrote on Nov 19, 2008 7:19 AM:

" First of all the ADMINISTRATIVE staff and MANY nurses who have "climbed" the proverbial ladder to non-nursing postitions in ADMINISTRATION due to FREIENDSHIPS are sucking the hospital dry of money!!! These nurses are "protected" by the CEO and Human Resources Director. Not only were ancillary personnel fired but also two nurses who held important NURSING positions for over 25 years each were "let go". Secondly, due to the fact that the CEO decided that Blue Cross would no longer be accepted, countless dollars are being spent in Stockton rather than Lodi "

OTH wrote on Nov 18, 2008 8:35 PM:

" Christine

I'm sorry to hear about your job situation but not surprised. You are the latest in a long line of employees terminated in this manner. "

roni95242 wrote on Nov 18, 2008 7:10 PM:

" LMS is the most Terrible hospital EVER!My Daughter recently was there and their was NOT a bed available for her and we were in the E R for 12 HOURS!! and then she was put across the hall in the G I lab!!
People get out of Lodi if you want quality medical care St Josephs is a Much better hospital and Modesto has much better Doctors!
I feel very bad for all the people who lost there jobs at Christmas time. "

SCOOP7 wrote on Nov 18, 2008 6:29 PM:

" In past months, LMH CEO Joe Harrington strongly encouraged all LMH employees to donate money to the hospital expansion fund and strongly urged 100% participation of its management staff. Hmmmmm....
To those employees who were "let go" this week due to budget restraints, I might suggest you demand any and all money given by you in support of the project be returned. Nothing like funding your own demise. "

MaJa wrote on Nov 18, 2008 5:44 PM:

" Reality1, I agree. We too have Blue Cross and I have a very large family. I have given St. Josephs Medical Center a LOT of business in the last year or so. Money that could be kept right here if Lodi Memorial would fix their contract with Blue Cross. "

SCOOP7 wrote on Nov 18, 2008 5:37 PM:

" As per the Stockton Record, Ms. Farron was quoted as saying, "It was a tough day for us yesterday, as you can imagine. We know that were only as good as our employees.
I know many current and former LMH employees--department managers included--who would beg to differ. From what I've heard, it is the "Top Brass" who should be downsized. "

Whoa Nellie! wrote on Nov 18, 2008 5:15 PM:

" Christine, it is not unusual to terminate the employment of a person when they give notice. It happens all the time in the real corporate world... which Lodi has little of. "

Aimee wrote on Nov 18, 2008 3:23 PM:

" I think the article also said that LM is planning to raise rates charged to patients by 8% in 2009.

Patients can always choose to go somewhere else for care. And how does LM raise rates where insurance is involved? Are they not under contract, agreeing to accept a certain amount for services rendered to covered patients?

On a related note to medical billing and charges, The California Supreme Court just heard arguments whether out-of-network emergency room doctors can charge the patient over and above what their insurance company will pay (Prospect v. Northridge, et al.). "

Aimee wrote on Nov 18, 2008 3:12 PM:

" The Stockton Record is reporting that severance packages are being offered to the terminated employees...is one week's pay Ms. Glover's severance package?

That IS sickening. "

loadeye wrote on Nov 18, 2008 2:48 PM:

" I have BC/BS and Lodi Memorial is on my approved list. My wife just used them twice last month. Why would they accept mine and not yours reality1? Just curious. "

lodi'syummymummy wrote on Nov 18, 2008 1:15 PM:

" It is sad, scary and really a sign of the times. One would think -hospitals would be almost exempt of laying off so many employees. Our economy-at which everyone is looking for stability in a job that looks promising -healthcare-specific to a hospital is obviously not able to stand up to our serious national crisis-with tuition fees going up in colleges/universtities, undergrades and students not even able to pay and jobs being questionable this is only more of a shock to those who are now in the unemployment lines. "

reality1 wrote on Nov 18, 2008 1:07 PM:

" Wonder if Lodi Memorial is going to get the Blue Cross contract back. That had to hurt. I as well as many others with Blue Cross can not use Lodi Memorial. We have to go to Stockton or Sac. "

loadeye wrote on Nov 18, 2008 12:51 PM:

" I think Lodi Memorial was, and still is, wastefully overstaffed. There are too many ways to funnel needed monies from non-profits and much of it is overpaid administration. The city of Lodi needs to make the same drastic cuts. With the bad economy, why should any one person or business be immune? Time for the city to bite the bullet and cut the overpaid and unnecessary administration and staff positions and combine the DLBP and tourist and Hutchins positions all under Mr. Rodem and save about 200K easily. Lodi Memorial needs to cut the costly Camp Hutchins and other programs they subsidize for the well connected and influential. "

SCOOP7 wrote on Nov 18, 2008 12:44 PM:

" So sad, yet not surprising. The nice new building goes up, up, up and the guillotine drops. That's Big Business for ya...................I just wonder how badly the "budgetary cutbacks" have effected the LMH Executive Team....LOL "

Comments on this story are now closed.