15 employees, 12 vacant jobs cut at Pen Bay $5 million deficit identified

ROCKPORT – Pen Bay Healthcare, the parent company of Penobscot Bay Medical Center, Mid-Coast Mental Health Center and other health care facilities in the Camden, Rockport and Rockland area, has cut 15 employees in a move to address a gap in its 2007-08 budget.

In addition to the cuts, 12 vacant positions have been eliminated, six from within management. Two other positions will have reduced hours.

Also, a change in the hours of operation of one department will result in 14 employees losing one hour of work each week.

The moves came when Pen Bay administrators identified a $5 million deficit projected in the first draft of its budget. The new budget year begins April 1.

Pen Bay’s annual operating budget is $140 million, with 60 percent devoted to wages and benefits, marketing and communications director Christopher Burke said Friday.

Several weeks ago, Pen Bay announced that up to 50 positions could be affected by the deficit. In fact, noted Pen Bay president and CEO Roy Hitchings, just 43 positions were affected.

“I cannot express enough how regrettable these layoffs are,” Hitchings said in a memo addressed to employees. “We realize the impact on people’s lives and families. They are not a reflection of a particular employee’s performance in any way, but a financial necessity.”

The eliminated shortfall allows Pen Bay to preserve “our mission and core services, keeps our wages competitive, and supports necessary investments in equipment … and facilities,” Hitchings said.

“I understand that much of this is not pleasant news, but I firmly believe it was prudent to address these issues and balance our budget now to provide good financial stewardship for our future and to help control health care inflation,” he said.