Medicaid cuts prompt Valley Baptist to lay off 44 workers

Valley Baptist Medical Center in Harlingen

Cuts to the state TMs Medicaid program have prompted Valley Baptist Medical Center to lay off 44 workers.

The Harlingen-based hospital system reported the layoffs in a statement issued Thursday.

In the statement, President & CEO James Eastham said Medicaid inpatient reimbursements have been reduced for all Texas hospitals.

Eastham said in the statement that Valley Baptist administrators looked for a away to work with a smaller budget.

Administrators laid off 44 employees from corporate support departments.

The Valley Baptist Health Systems owns one hospital in Harlingen and another in Brownsville.

The reductions were made in these departments so we can continue to focus resources in our direct patient care areas, Eastham said in the statement.

Eastham assured that the layoff would not affect the quality of care at the hospital and that administrators provide some transition assistance to those laid off.

Click here for a PDF copy of Valley Baptist's memo

Valley Baptist Statement:

During the past legislative session, our State faced difficult financial issues. The resulting reductions in Medicaid inpatient reimbursement are impacting all Texas hospitals. As healthcare stewards of this community, Valley Baptist must adapt to these changes in healthcare reimbursement to continue providing our citizens with the high quality patient care they expect from the largest health system in Cameron County.

We examined ways to manage our resources in light of this significant decrease in payment for our services. As part of this plan, today we implemented a reduction in our work force of 44 staff members from corporate support departments. The reductions were made in these departments so we can continue to focus resources in our direct patient care areas.

We recognize this is a difficult situation for everyone concerned, especially those employees directly affected by this reduction. We will work with each of them to help with their transitions.

Valley Baptist remains steadfast and committed to our mission of quality patient care and serving this community for generations to come.