Here’s more on the job reductions and department closures that Reid Health announced on Tuesday. Reid has not released the specific number of employees who have been affected, although that number is expected to be released in a subsequent statement later today. Meanwhile, Reid CEO Craig Kinyon further outlined the organization’s challenges by saying that the shortfall between increasing costs and the amount that Reid receives is growing. Adding to the burden is the fact that insurance companies are slow to reimburse patients with commercial insurance after care has been delivered. In many cases, according to Reid, claims are even outright denied despite having prior authorizations. Reid also indicated that other hospitals across Indiana are in a similar situation.

Although this is the first time Reid Health has undergone substantial job cuts due to financial pressures, the organization has been dealing with financial shortfalls for an extended period. 15 years ago, Reid had $60 million in categories such as bad debt, charity care, and Medicaid payment shortfalls. By 2016, that number had nearly tripled – ballooning to $158 million without including Medicaid shortfalls. That year, Medicaid paid 31% of charges and Reid wrote off $102 million and announced a rate increase.