Barton layoffs hit management level

By Kathryn Reed

Barton Memorial Hospital is continuing to layoff employees in an attempt to remain solvent.

The nonprofit medical center in South Lake Tahoe let six mid-level managers go on Friday. It was a mix of clinical and nonclinical staff.

However, none of the upper management has lost their jobs in any of the layoffs, nor have they taken a pay cut. According to 2008 IRS documents, the most recent available, CEO John William’s annual salary was $524,907. This does not include benefits.

Five employees make $100,000-plus a year; four make $200,000-plus; and CFO Dick Derby is the second highest paid employee at $341,288.

It’s possible more layoffs will be forthcoming this year if employees do not take earlier retirement packages. Full- and part-time workers are being offered incentives to retire early.

The hospital has not set a target for the number of people it wants to see retire early.

The cost-savings from the current round of layoffs was not available. Nor does the hospital have a figure for the amount it needs to reduce the bottom line by with the early retirements.

In March 2009, Barton laid off 43 employees.

“It’s strictly an effort on Barton’s part to cut labor costs. We are continuing to see a decrease in tourism and increase in unemployment,” Barton spokeswoman Denise Sloan said.

With fewer people on the slopes, it means fewer gurneys wheeled into Barton’s emergency room. Snow sports injuries are a big part of Barton’s revenue stream in the winter.

“And Barton is seeing a decline in the reimbursement rate from government programs such as MediCal and Medicare,” Sloan said.

People are also continuing to skip elective surgeries, especially as deductibles rise. This means less income for the hospital.