Children’s Hospitals are a non profit system and through early retirements, not filling vacated positions and some layoffs by November the magic number here is projected to be around 250 positions. Treating a large number of Medicaid patients has attributed to the loss of revenue. BD
MINNEAPOLIS - Just when we start to hear that there may be some improvement in the economy, Children's Hospitals and Clinics will take a hit. Some layoffs and cost reduction efforts are underway due to the high number of Medicaid patients.
It seems that Children's Hospitals and Clinics held on as long as they could without any changes, but the poor economy has finally taken it's toll.
With the downturn in the economy, more children rely on Medicaid -- the largest insurer of children here in Minnesota. At Children's, that population has grown from 38 percent to 44 percent just in the past year alone. Medicaid funding has been cut and it only pays providers about 80 percent of their costs. Children's says because of that, it lost $43 million last year treating Medicaid patients.