Driggs, Idaho-based Teton Valley Health Care laid off 26 employees, or around 10% of its 276-person workforce, on Jan. 22 and 23 and plans to close its infusion clinic amid financial pressures.
The layoffs affected staff across multiple departments, including management, Nancy Osmundson, chief public relations officer and foundation executive director at the system, confirmed with Becker’s.
Ms. Osmundson cited multiple factors for the system’s financial challenges, including a 75% drop in patient days from what they budgeted, delayed reimbursement and extreme weather that has reduced typical winter patient volumes. The system also saw a $1.2 million Medicare-Medicaid takeback in November and around $2 million in employee retention credits frozen by the IRS.
“It was a couple of factors that hit us very quickly,” she said. “Downsizing our workforce is always our last resort, but we are at that point.”
A closure date was not set for the hospital’s infusion clinic, which will close once its existing medication supplies have been depleted. Ms. Osmundson said there is hope it will eventually reopen. She also said a donor has provided bridge funding to cover the system’s shortfalls for up to 12 months.
Teton Valley Health Care comprises Driggs-based Teton Valley Health Hospital, Driggs Health Clinic and the Victor (Idaho) Health Clinic, according to its website.
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