D-H Expected to Lay Off Hundreds of Employees in 3-5% Cut
In light of an operating loss of $12 million from Dartmouth-Hitchcock’s last fiscal year, they are laying off hundreds of employees by January. The hospital expects to let go of at least 270 employees by the end of 2016, and may even lay off as much as 460, as part of 3 to 5 percent workforce cuts. D-H will examine its clinical programs to look at ways to save money, considering that although they had a profit of around $10 million across the first three quarters of 2016’s fiscal year, they spent $22 million in the fourth quarter alone.
At the end of June, the hospital was down $12 million on the year, making it the 3rd in a row that they’ve been in the negative. This caused a credit rating firm, Fitch Ratings, to lower the hospital’s rating from an A+ to an A and placed the hospital on a negative credit watch.
The layoff plan will be revealed in mid-October and Governor Maggie Hassan has reacted by saying that the state’s Office of Workforce Opportunity will help find new jobs for the laid off workers.
The mass layoff will only affect the main D-H site and won’t include workers at affiliated hospitals such as Alice Peck Day, Ascutney, and New London Hospital.