Leaders from six Ohio hospitals told state House subcommittee members earlier this week that significant job, income tax and medical service cuts are likely to result from Gov. Ted Strickland's two-year budget proposal. A new franchise tax could cost the hospitals $598 million over the two-year budget period.
Akron General Medical Center will lay off 145, St. Vincent Charity Hospital is cutting 50 jobs and St. John West Shore shed 10. In addition, the Health Alliance of Greater Cincinnati said it would layoff about 50 employees at two of its hospitals. "We are facing unprecedented challenges in our economy," said one hospital spokeswoman.
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University Hospitals will take over management duties at St. John West Shore Hospital in Westlake -- giving it a stronger foothold in the increasingly competitive and lucrative western suburbs of Cleveland. Sisters of Charity takes full control of Cleveland's St. Vincent Charity Hospital and Canton's Mercy Medical Center.
"We have a growing population with no primary care doctor," said Patrick McMahon, who started this week as the new chief financial officer at Sisters of Charity Health System. "We need to deal with that issue. I'm not talking about Sisters of Charity, in particular. I just started here. But across all hospitals, it's an issue."