Citing decreases in reimbursements, especially from Medicare and Medicaid, Rush Health Systems said Tuesday it would be reducing its expenses through staff reductions.

“Our health system payroll is our largest expense and therefore, must be managed as efficiently as possible,” Scott Vincent, the human resources director of Rush Health Systems, said in a statement. “We are going about reducing our payroll expenses by offering an early retirement option, not filling positions as they become open and as a last resort, reduction in staff via a position reduction.”

The hospital declined interviews or providing additional information other than an email accompanying the statement.

“Unfortunately, the present economic climate and situations in our marketplace are causing us to have to make some staff reductions across the health system,” Vincent said in the statement. “Health systems all across the nation are doing the same thing. The percentage of the total employee base being reduced is approximately (4 percent).”

In February, Rush Health Systems said it employed 2,800 people, making it the largest non-government employer in the area. A 4 percent reduction would mean losing 112 positions.

The statement said the hospital’s human resources department would attempt to find those in eliminated positions with finding a new job within the health system and community.

“We understand that it is very difficult for anyone to lose their job. Our leadership postponed making staff reductions as long as possible. Every effort has been made to eliminate those positions which will least impact patient care,” the statement read. “Rush Health Systems is committed to continuing to provide quality care and service. We owe it to the community we have served for over 100 years to maintain a solid foundation that will overcome the extraordinary financial challenges we are facing today.”

Many health systems across Mississippi have faced similar decisions with employment reduction and some hospitals have closed their doors entirely, Richard Roberson, the vice president of policy and state advocacy at the Mississippi Hospital Association, said.

“There’s a couple of reasons to reduce workforce,” Roberson said. “Especially following new movements in Medicaid and Medicare.”

Roberson said that staffing, because of its significant cost, often decreases in healthcare businesses – especially for hospitals that depend on Medicare and Medicaid payments.

Roberson estimated that, in Mississippi, Medicare and Medicaid patients account for 60 percent of all hospital discharges, making cuts in these government health plans especially impactful on hospitals.

“It’s not unusual to see a (workforce) reduction in healthcare (after Medicaid and Medicare changes),” Roberson said. “It’s a ripple effect and hospitals have to adjust.”