A reduction in patient admissions and declining reimbursements led last week to the elimination of 26 positions at Highland Medical Center in Scottsboro, Ala.
Highland Medical Center CEO Dr. Lonnie Albin said in a statement the hospital is dealing with the same financial battles other rural hospitals face.
"In 2015, the state of Alabama chose not to expand Medicaid, which would have allowed more coverage for uninsured in Jackson County," Albin said. "Under the Affordable Care Act, Medicaid expansion was intended to offset Medicare payment reductions included in the law."
In the face of those challenges, the job cuts were necessary in order to "maintain and improve hospital facilities, stay on track with the latest health care technologies, and sustain compliance and regulatory requirements."
"These cuts have to be made," he said.
Albin noted that 10 Alabama hospitals have closed in the last five years.
Administration officials said the jobs are spread across numerous departments. Six vacant positions will not be filled. The hospital employs more than 700 people.
"We do not know what the future holds related to government changes. These decisions are made based on what we currently have to work under, and we certainly have to act," Albin said. "We are receiving reduced payments from Medicare for the care we provide, while at the same time we are treating an increasing number of uninsured and underinsured patients."
The cutbacks are intended to preserve the institution itself.
"It would be a travesty for us to potentially lose our hospital. That's why we have to make these tough decisions," he said.
Hospital officials are continually looking for ways to reduce costs while remaining a viable health care provider for Jackson County, Albin said.
"No services have been changed," he said. "Patients will be unaffected by the employment changes. We will do whatever it takes, including making hard decisions, to remain a valuable health care resource for our community. Patient care remains our top priority."
Contact staff writer Ben Benton at bbenton@timesfreepress.com or 423-757-6569.