Modesto's Memorial Medical Center gives pink slips to 39 employees

04/17/2013 2:20 PM

06/26/2013 2:31 PM

Memorial Medical Center gave pink slips to 39 business office employees Wednesday, with the layoffs to take effect in 60 days, a hospital spokeswoman said.

The employees, who handle billing and other business office duties, officially were notified Wednesday morning, said Catherine Larsen, marketing director for Sutter Health's Central Valley region.

She said employees were told in the fall that their jobs would be moved to a new center in Roseville and they could be eligible for job opportunities there.

Memorial's parent organization, Sutter Health of Sacramento, is using the Roseville center to consolidate the finance, purchasing, human resources and billing functions of its medical facilities spread across the Central Valley and Bay Area.

Larsen said 15 employees at Memorial were offered jobs at the new center. Most of those given layoff notices did not apply for jobs in Roseville, she said.

In hospitalwide cuts that took effect in January, Memorial laid off 114 employees, including nurses, respiratory therapists, nursing assistants and housekeepers, and reduced the hours of 51 others. Memorial officials said in November the hospital was scaling down staff to adjust for fewer admissions and a decline in payments from insurers.

Employees affected by the cuts this week will receive severance pay and help with finding other employment, the hospital said.

"We are looking at providing the highest level of support services we can in the most efficient way possible," Larsen said. "We need to streamline our services and try to become more affordable to our patients."

Bee staff writer Ken Carlson can be reached at or (209) 578-2321.

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