80 jobs cut at Condell Hospital
The fallout from Condell Medical Center's decision to sever ties with Blue Cross Blue Shield continued Tuesday as the financially struggling hospital laid off approximately 80 employees.
"It has been a very difficult day for everybody," said Jodi Levine, Condell vice president. "The cuts were made across multiple departments, including the executive staff."
Officials at the Libertyville-based hospital said the cuts were necessary as a result of a dramatic decrease in patients since Nov. 1, when Condell stopped accepting Blue Cross Blue Shield, the area's largest commercial insurer.
Affected employees were offered severance packages. Levine would not say how much money will be saved from the layoffs.
"All departments were certainly well aware of our reduction in volume. It was just a matter of trying to minimize the number of people impacted," Levine said. "There are no plans for further reduction."
Tuesday's cuts are being cast as a reorganization, and Condell officials have promised staff reductions will not hurt patient care.
Condell and Blue Cross Blue Shield negotiated unsuccessfully for more than a year, with both sides alleging they are owed millions of dollars from each other.
Condell's ultimate decision to end its relationship with the insurance company affected 11,000 HMO patients and tens of thousands of PPO patients -- about 20 percent of Condell's business.
The impact is compounded by the fact other area hospitals, including Advocate, Lake Forest and Vista Medical Center, still accept Blue Cross Blue Shield.
Condell officials acknowledge the hospital's financial future was in jeopardy even before its problems with Blue Cross Blue Shield.
An external audit last year revealed misstated earnings and financial losses from prior years.
Condell reported an operating loss of $10.4 million for 2006.
Meanwhile, Condell is continuing merger discussions with Oak Brook-based Advocate Heath Care.
Levine said previously it would be extremely difficult for Condell to continue to deliver the breadth and level of service to Lake County without some additional financial resources.