Outsourcing leads to several layoffs
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Washington Health System has outsourced its medical transcriptions, resulting in the layoffs of several people.
Washington Health System spokeswoman Kara Tershel said Tuesday the decision to outsource transcriptions of medical records – the transcribing of notes on patients’ care made by the medical staff – was actually made last year, but didn’t go into effect until Jan. 6.
According to Tershel, the move to have Clear Choice Transcriptions of McKees Rocks perform the work affected nine people at WHS.
She said two employees were selected for positions in other areas of the health system, while one retired.
The remaining six were offered positions with Clear Choice, but declined and were laid off, Tershel said.
She said the decision to outsource the transcription services was the result of the health system’s efforts to save costs as a result of changes to the nation’s health-care industry through the Affordable Care Act.
In June, WHS cut the equivalent of 68 full-time positions as a result of lower admissions at Washington Hospital and what it said was a $2 million reduction of Medicare payments to the hospital as a result of federal cuts. The majority of those cuts, about 90 percent, were made at Washington Hospital and affected both union and nonunion positions.
The 68 cuts in positions resulted in the loss of about 25 full-time jobs.