Rideout to lay off 106 employees, cut services
Rideout Health will lay off 106 employees, eliminating some services and disassociating itself from clinics it manages in Neva- da County.
Michael Harrison, director of Human Resources for Rideout Health, in a reduction in force memo, notified the employees on Thursday that May 15 will be their “separation date.”
A copy of the notice received by employees who will be let go was posted via social media.
The health organization has about 2,200 employees.
The employees and departmental cuts will occur at Ride- out Memorial Hospital, Rideout Health Business Services, Rideout Home Health/Hospice, Sierra Healthcare, Rideout MultiSurgical Care, Rideout Women’s Health, and Rideout Women and Children, according to that memo.
“After a great deal of consideration and evaluation, Rideout Health has made the difficult decision to adjust its operations
across three specific areas, as well as its management of four remote clinics,” according to a press release.
Those three areas of operation that will be discontinued include home health, hospice and medical equipment services. The services will be discontinued within the next 60 days.
Rideout said it could not operate competitively in those highly-specialized fields of care. Instead of running the services under Rideout Health, the organization will look to other organizations providing those services to accommodate patients.
Rideout Health will also cut ties with four clinics in Nevada County: Rideout Primary Care at Grass Valley, Rideout St. Moritz Grass Valley and Rideout Primary Care in Grass Valley and Rideout Specialty Care Clinic in Penn Valley.
Though Rideout Health will no longer affiliate itself with the clinics, it said it doesn’t expect the facilities to close because another health care organization can take over the management. Transitioning to new management of
the clinics is expected to occur no later than June 30, according to the press release.
“Our decision was a very difficult one, and I understand the impact it will have on a number of individuals who have been part of our Rideout family,” said Gino Patrizio, CEO of Rideout Health. “If it was avoidable, we would have avoided it. We must make adjustments to our operations in order to preserve Rideout’s core services and ensure its future sustainability.”
The organization said it will also be implementing other restructuring and efficiency measures to optimize operations, but does not anticipate the changes will have any effect on current employees.
Rideout said it is trying “to create savings and efficiencies that can help strengthen (its) ability to deliver on its core mission far into the future.”
The layoffs were announced two months after Moody's Investors Service downgraded Rideout’s credit rating from a Ba3 to a B1.
Moody’s said the downgrade “reflects ongoing cash flow pressures as (Rideout Health) faces lower than budgeted revenue growth and rising expenses associated with its new patient tower.”