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Lodi Memorial Hospital faces $2.1 million in losses
In a surprising turnaround in its finances, Lodi Memorial Hospital will need to make several cuts to compensate for $2.1 million in revenue losses.
Hospital President and CEO Joe Harrington had said that he expected the hospital to make $4.3 million by the end of April. Instead, it has lost more than $2 million.
Harrington told more than 200 employees crammed in the hospital dining room on Monday afternoon that there won't be any layoffs at Lodi's community-based hospital.
The easiest way to trim the hospital's deficit, Harrington said, would have been to cut everyone's salary by 16 to 17 percent across the board, or to lay off 65 to 70 people.
The hospital board chose not to take either of those steps.
"We chose not to do that," he told employees. "We have enough people out of work. We don't need more."
Instead, Lodi Memorial will take other steps to trim its budget, including freezing merit pay increases and accrual of paid time off, reducing the amount of cash employees may collect in lieu of health insurance, charging employees health insurance premiums for the first time, and freezing employer retirement plan contributions.
Cuts at a glance
Lodi Memorial Hospital cuts, effective July 19:Source: Lodi Memorial Hospital
Although Lodi Memorial has treated more patients in the past five months than any time in its history, more of them are uninsured and self-paying due to the increase in unemployment, Harrington said.
"We don't think that (patients) will miraculously go back to work and pick up health insurance," he added. "We still need people to treat people."
State and federal budget cuts are also expected to seriously affect Lodi Memorial's Medi-Cal and Medicare reimbursements, he added.
Harrington told employees he had two basic questions: "Would you rather have a job or not? And do you care about the people you work with (having) their job?"
Harrington has already cut his salary by 10 percent, according to Carol Farron, Lodi Memorial's community development director.
"If reducing my pay is going to save somebody's job, I'm willing to do that," Harrington said.
Belinda Hurst, a registered nurse in the Information Technology Department, said she has a "nice salary," so her greater concern is the welfare of the entry-level employees. She said she wants to keep them employed.
Harrington pledges to continue the hospital's quality, personalized care, and to open new buildings and add services that are already planned — an endoscopy center, community clinics, ambulatory surgery center and the hospital's South Wing.
The endoscopy center is for people getting a colonoscopy and other procedures requiring a scope. The South Wing is scheduled to open near the end of this year.
A hospital employee asked Harrington if selling the hospital is being considered.

"Every time I bring that up to the board, they say 'no,'" Harrington replied. "That is really not an option."
That is, unless the hospital was nearing bankruptcy and there were no other options, he added.
Another employee asked if administrators gave any thought to seeking donations from the community to improve the hospital's finances.
"We'll look at everything we can," Harrington said, but in this economy where everyone's struggling, it's not a good time to ask anybody for money.
Diana Veasley, of Lodi, a nutrition and food service employee at Lodi Memorial, said after the staff meeting that she'll have to cut back a little because she's attending San Joaquin Delta College.
"I'm thankful that we're still employed," Veasley said. "I respect the fact (that Harrington) is giving up his 10 percent."
Stockton resident Sameena Shah, a diet aide in food services, said she will be affected by having her cash benefit in lieu of health insurance reduced from 18 percent to seven percent. This is for people who have a spouse or relative on another medical plan collecting a cash payment in lieu.
Shah and Hurst said they are grateful for the opportunity to have a staff meeting where Harrington explained the hospital's financial picture.
There may be some other changes, but Harrington said he doesn't know if there will be any or what they would be.
"I have a list of, I think, 56 things we're continuing to analyze," he said.
Harrington quipped, "HR will be open 24 hours a day."
The community is welcome to view the employee bulletin board as information is updated. The address is www.lmhemployees.org.
Contact reporter Ross Farrow at rossf@lodinews.com.

Reader Feedback
princess05 wrote on Jun 17, 2009 9:08 PM:
goonandget wrote on Jun 17, 2009 6:52 PM:
loyal worker wrote on Jun 17, 2009 5:19 PM:
princess05 wrote on Jun 17, 2009 1:51 PM:
sleahc wrote on Jun 17, 2009 7:37 AM:
princess05 wrote on Jun 16, 2009 11:09 PM:
Lodian wrote on Jun 16, 2009 9:22 PM:
" The new Wing is almost completed. Get over it!!"
I think the point being made here is that when there are now cuts to be made it's hard to accept when there was just $187 million dollars put out for a beautiful addition to the hospital. Were funds mismanaged? Perhaps someone in charge of this project/funding should be fired. "
Lodian wrote on Jun 16, 2009 9:19 PM:
Lodian wrote on Jun 16, 2009 9:18 PM:
Lodian wrote on Jun 16, 2009 9:17 PM:
Lodian wrote on Jun 16, 2009 9:16 PM:
loyal worker wrote on Jun 16, 2009 8:04 PM:
sleahc wrote on Jun 16, 2009 7:30 PM:
goonandget wrote on Jun 16, 2009 7:29 PM:
Sweet Lady wrote on Jun 16, 2009 2:50 PM:
Lodian wrote on Jun 16, 2009 12:41 PM:
Lodian wrote on Jun 16, 2009 12:40 PM:
intheknow wrote on Jun 16, 2009 12:08 PM:
intheknow wrote on Jun 16, 2009 12:05 PM:
Lodian wrote on Jun 15, 2009 10:07 PM:
loyal worker wrote on Jun 15, 2009 7:29 PM:
princess05 wrote on Jun 15, 2009 7:13 PM:
goonandget wrote on Jun 15, 2009 6:26 PM:
You are so right!I wish everyone felt the same way we do. Like I said before, unhappy LMH employees need to move on!!! "
sleahc wrote on Jun 15, 2009 6:10 PM:
Lodian wrote on Jun 15, 2009 4:08 PM:
Lodian wrote on Jun 15, 2009 4:06 PM:
goonandget wrote on Jun 15, 2009 3:37 PM:
Lodian wrote on Jun 14, 2009 11:13 PM:
Lodian wrote on Jun 14, 2009 11:11 PM:
Lodian wrote on Jun 14, 2009 10:56 PM:
sleahc wrote on Jun 14, 2009 9:44 PM:
Lodian wrote on Jun 14, 2009 9:34 PM:
sleahc wrote on Jun 14, 2009 9:23 PM:
As for everyone who cant understand where all the money has gone in the last 6 months-LOOK AROUND! How many businesses have you seen close in Lodi alone? How many car dealers? Everyone is hurting financially, do you think LMH is exempt from this? Our situation is that we cant turn anyone away from the ER- Thats a federal law! So now with more people unemployed, no insurance, no money but they are sick and we still have to treat them. Dont get me wrong, I am not complaining... I got into healthcare to help people and I always will regardless of their ability to pay.
I am more than willing to give up a few benefits to keep my job at a place that I love to work! "
Lodian wrote on Jun 14, 2009 11:51 AM:
Oh, and they have way too many non English speaking assistant nurses. If they knew English it was not enough as far as I'm concerned, especially in a hospital setting. Makes for a very confusing visit that could actually become dangerous due to language barrier. "
ProudRn wrote on Jun 13, 2009 8:36 PM:
loyal worker wrote on Jun 13, 2009 7:06 PM:
missktk wrote on Jun 13, 2009 5:59 PM:
Observer wrote on Jun 13, 2009 2:29 PM:
loyal worker wrote on Jun 13, 2009 2:25 PM:
loyal worker wrote on Jun 13, 2009 1:47 PM:
princess05 wrote on Jun 13, 2009 1:23 PM:
goonandget wrote on Jun 13, 2009 6:25 AM:
jchimpo wrote on Jun 13, 2009 6:10 AM:
illegalinLodi wrote on Jun 12, 2009 10:11 PM:
goonandget wrote on Jun 12, 2009 7:26 PM:
Please hang in there. Yes,Joe makes big bucks, but do we want the Union to come in or be bought out by a Corporation? Union leaders and Corporate Giants make big bucks too! I don't want to become a number! We need to keep our Hospital just the way it is,a Community Hospital. "
loyal worker wrote on Jun 12, 2009 6:42 PM:
goonandget wrote on Jun 12, 2009 5:00 PM:
Sweet Lady wrote on Jun 12, 2009 4:02 PM:
illegalinLodi wrote on Jun 12, 2009 7:49 AM:
concerned citizen wrote on Jun 11, 2009 9:47 PM:
illegalinLodi wrote on Jun 11, 2009 6:07 PM:
commonsense1 wrote on Jun 11, 2009 2:24 PM:
Sweet Lady wrote on Jun 11, 2009 1:38 PM:
loyal worker wrote on Jun 11, 2009 12:52 PM:
concerned citizen wrote on Jun 10, 2009 10:22 PM:
princess05 wrote on Jun 10, 2009 6:39 PM:
loyal worker wrote on Jun 10, 2009 6:38 PM:
S & W 500 wrote on Jun 10, 2009 6:21 PM:
I was unisured for 20 years, I paid cash. I have insurance now, briefly.
Screw all people who are milkers: WIC, Welfare, SSI, You TURDS should be free public employees. "
lodibrown wrote on Jun 10, 2009 4:44 PM:
intheknow wrote on Jun 10, 2009 4:20 PM:
jna040806 wrote on Jun 10, 2009 3:30 PM:
Whoa Nellie! wrote on Jun 10, 2009 2:05 PM:
The POINT is having a job, being a productive member of society, being a role model for your children, the list goes on & on... But you state you want to go out on mental stress disability, make the same pay (NOT true!), and lay around the house with the kids. Ring Ring.... "Jerry Springer calling.."
My only question would be: single or double wide? "
intheknow wrote on Jun 10, 2009 10:49 AM:
gladtobeout wrote on Jun 10, 2009 9:07 AM:
Whoa Nellie! wrote on Jun 10, 2009 1:43 AM:
It is also a FACT that these white, black, brown, & yellow UNINSURED patients are one of the leading reasons to the out of control increases in health care premiums.
And, to GLADTOBEOUT- "if all the smart employees went out on medical disability due to stress," would that be because they are mentally weak or just another person looking for a free ride? And what self-respecting Doctor would sign of on this? "
princess05 wrote on Jun 9, 2009 10:46 PM:
OTH wrote on Jun 9, 2009 9:46 PM:
gladtobeout wrote on Jun 9, 2009 9:45 PM:
They tell their employees to just be glad you have a job! ha! You can make more on unemployment and what incentive are they now giving ANY of their dedicated hardworking employees? NONE...The hospital's Admin is very underhanded and sneaky so don't be surprised to see this place go into BK or get sold in the near future! Also, Mr.Harrington said "the board" is looking at 56 other things/options but he doesn't know what they are...Yah right! He knows, he just won't tell because then what would the hosp do if their smart ee's all went out on a Medical Disability due to STRESS and he and his wonderftul efficient team of leaders were to left to do the IMPORTANT WORK that the unmentioned people do? They wouldn't have a clue how to do the billing,etc...Just sit back and watch the politics happen here... "
dogs4you wrote on Jun 9, 2009 9:15 PM:
Nellie, FYI, LMH is JCAHO rated, type it up on Google and you know the "rest of the story"
Sam, good advice but you would be surprised at how many guys won`t have that procedure done, at least get a PSA test done, your life counts on it. "
gladtobeout wrote on Jun 9, 2009 8:54 PM:
sam wrote on Jun 9, 2009 8:53 PM:
On a serious note, everyone over 40 should have a colonoscopy. My dear friend died at 45. By the time he had any symptoms it was too late.
No matter where you go, "Getter Done." "
gladtobeout wrote on Jun 9, 2009 8:52 PM:
commonsense1 wrote on Jun 9, 2009 8:25 PM:
Robb wrote on Jun 9, 2009 7:18 PM:
S & W 500 wrote on Jun 9, 2009 6:56 PM:
At least have the b*&ls to print reality and my freedom of speech! "
dogs4you wrote on Jun 9, 2009 6:02 PM:
dogs4you wrote on Jun 9, 2009 5:45 PM:
sam wrote on Jun 9, 2009 5:43 PM:
I fell in love with Sutter in Sac. I also LOVE the Elk Grove outpatient surgery clinic for colonoscopies. The drive is a bit more, but the quality of care is amazing.
Now that LMH takes Blue Cross again, why go back? "
jna040806 wrote on Jun 9, 2009 5:26 PM:
I am fine with paying for insurance, but does it really need to be this high??? how about cutting PTO in half? "
Whoa Nellie! wrote on Jun 9, 2009 5:26 PM:
From my family members experiences with LMH, and the Doctors, if I was with another insurance I would be going somewhere else; UC Davis or Stanford maybe.
What, or Who, is the Board protecting? Times have changed and the local independent one hospital is even out of style in Mayberry.
Ding Dong... Sutter is here. Ring ring... Kaiser calling. It is time to sell. Is LMH even JCAHO rated? "
dogs4you wrote on Jun 9, 2009 4:55 PM:
gladtobeout wrote on Jun 9, 2009 4:14 PM:
dogs4you wrote on Jun 9, 2009 2:47 PM:
Inquisitor wrote on Jun 9, 2009 12:43 PM:
Aimee wrote on Jun 9, 2009 11:28 AM:
Although these cuts are sure to sting, I think the employees of Lodi Memorial should count themselves lucky that they still have a job; things could be much worse.
As far as the billing comments that have been made, I couldn't agree more. The billing department is rude and needs to get their act together. "
concerned citizen wrote on Jun 9, 2009 11:27 AM:
glockman125 wrote on Jun 9, 2009 10:42 AM:
jbhiker wrote on Jun 9, 2009 9:34 AM:
concerned citizen wrote on Jun 9, 2009 8:33 AM:
illegalinLodi wrote on Jun 9, 2009 8:27 AM:
illegalinLodi wrote on Jun 9, 2009 8:26 AM:
concerned citizen wrote on Jun 9, 2009 8:25 AM:
Observer wrote on Jun 9, 2009 8:10 AM:
concerned citizen wrote on Jun 9, 2009 8:09 AM:
WingIt wrote on Jun 9, 2009 7:53 AM:
concerned citizen wrote on Jun 9, 2009 7:53 AM:
illegalinLodi wrote on Jun 9, 2009 7:49 AM:
Jenn H wrote on Jun 9, 2009 7:45 AM:
concerned citizen wrote on Jun 9, 2009 7:14 AM:
Comments on this story are now closed.