Responding to the pandemic has put an enormous financial strain on the Bay Area Hospital. Throughout the pandemic, surgical services have been disrupted by government action and COVID-19. In addition, there has also been the high cost of temporary labor, where individual contract rates for transient personnel more than doubled in the past year. These extremely high costs to fill open positions quickly and maintain access to care have been the single most significant driver of increased costs. The hospital has spent approximately $19 million since September 2021 to cover all of these additional costs. This level of spending is unfair and unsustainable, and we must make some very difficult decisions to ensure that Bay Area Hospital stays strong.
Bay Area Hospital is canceling the contracts of 56 transient personnel. Effective dates will be in accordance with individual contracts but generally take effect in 14 to 30 days. These reductions will affect many parts of the hospital, but all areas of service will remain open, with the exception of Behavioral Health. The final closure date of inpatient behavioral health services will be based on various factors but is generally expected to be within 30 days.
These changes will reduce the organization’s annual expenses and align our cost of operations with our budget. Bay Area Hospital remains committed to serving this community’s healthcare needs and honoring the people that join the organization in that mission. We recognize that these past two years have been very challenging for many people but know that there continues to be a bright future ahead as we reposition Bay Area Hospital for continued success.
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