Cape Fear Valley Health System cuts 118 jobs - WNCN: News, Weather

Cape Fear Valley Health System cuts 118 jobs

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FAYETTEVILLE, N.C. -

Cape Fear Valley Health System says federal budget cuts it faces are behind the decision to cut 118 jobs from its workforce.

The Fayetteville Observer reports (http://bit.ly/19FLYGG) that 19 people actually lost their jobs. There were 99 vacancies. The decision comes as the result of $22 million in federal budget cuts set to take effect starting next Tuesday.

Cape Fear Valley CEO Mike Nagowski said six of the 19 were in senior management. The rest were spread across departments, but Nagowski would not identify them because he said notifications were sent just this morning. Nagowski also said no clinical positions were cut.

"We will not allow this to have an impact on hospital operations," he said.

The affected workers will be given priority placement in any other positions for which they are qualified, but it's not clear how many slots will be available.

The cuts are a combination of sequestration, a lowering of Medicaid reimbursement rates and Medicare cuts that are part of the Affordable Care Act.

Nagowski said Cape Fear Valley is hit harder by the cuts because it handles a higher percentage of federally-funded patients than any other system in the state, though others handle higher volume. More than half the patients who visit Cape Fear Valley's emergency department are on Medicaid or uninsured.

State lawmakers declined the Medicaid expansion offered to states under the Affordable Care Act. Nagowski said it was hard to say what financial impact the additional Medicaid patients would have had on Cape Fear Valley, but said it would have offset some of the losses.

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