Industry · MO
Children's Mercy Cuts 115 Jobs, Outsources Revenue Cycle Staff
Kansas City-based Children's Mercy, a nonprofit pediatric hospital system, announced Nov. 2 it will eliminate 115 positions, about 1.2% of its nearly 9,000-person workforce, largely in nonclinical administrative, leadership and support roles. Separately, the system is outsourcing 473 revenue cycle and scheduling employees to Ensemble, a revenue cycle management vendor, who will continue supporting hospital operations under the new arrangement. The hospital cited rising costs and reimbursement that has not kept pace as drivers of the restructuring, and said the changes are meant to preserve its status as one of 28 independent freestanding children's hospitals nationally.
Why it mattersPediatric hospitals reliant heavily on Medicaid reimbursement are restructuring operations as cost growth outpaces payment rates, a financial pressure point relevant to state agencies and plans negotiating rates with children's hospitals.