Hospital Corporation of America Cuts IT Jobs and Closes a Medical Center in Tennessee

The economy has hit the Hospital Corporation of America very hard. The end result is the closing of our local hospital here in Portland, TN. The Portland Medical Center is a small facility which previously was owned and operated by the Seventh Day Adventist Church, and was purchased by HCA in 2006. Services at the Portland Medical Center will be consolidated with Hendersonville (TN) Medical Center by December 30, 2008.

For the past several years there has been a decline in people using the Portland Medical Center for needed hospital services. Most have preferred to use the Hendersonville Medical Center or other Tri-Star facilities in the area. This decline in patient usage along with the poor economy has forced the closing of the emergency room and all in-patient hospital services at the Portland facility.

There are many doctors' offices located within the Portland Medical Center and these offices will remain open in order to serve the community with needed health care. The laboratories and x-ray departments will also remain operational. The cutback will cause a delay in obtaining medical care for victims of accidents, heart attack and stroke, since patients will be transported to the Hendersonville facility or to other Gallatin or Nashville hospitals for their emergency care.

In addition to the closing of the Portland Medical Center, HCA has also cut 109 employees from its Nashville Information Technology (IT) Department.

Spokesman for the Nashville-based hospital chain has been quoted as saying, "This is a tough economy and we're taking the necessary steps to maintain a strong financial position in difficult times." He added that the final count of employee cuts is not yet available and people are currently being notified.

Tri-Star Health Systems, a subsidiary of HCA said it will cut about 50 jobs from its Middle Tennessee facilities and has already cut some jobs from its hospitals in southwest Virginia.

The Hospital Corporation of America has 2,600 corporate employees in Nashville and has a long-term debt of $27 billion. Operating profits have been flat in recent years and HCA stock has been removed from public trading. Given their huge debt, an economy in recession and HCA's flat earnings, this is, indeed, a difficult environment for hospitals to operate at a sustainable level.

With more and more people losing their jobs and their health insurance benefits, it is likely that even more health care facilities will be facing similar situations.

The loss of the Portland (TN) Medical Center works a hardship on people in this community due to the longer drive to hospitals for emergency room treatment and in-patient treatment.

Sources:

The Portland Progressive, November 19, 2008

The Tennessean December 4, 2008