New Brunswick-based St. Peter’s University Hospital has announced it will cut 108 jobs, including 66 full-time workers.
Leslie Hirsch, the hospital’s interim CEO, said in a prepared statement that the cuts are necessary “in order to remain competitive in an extremely challenging and complex environment."
No services or programs will be cut, according to a statement from the hospital. It will also eliminate 42 other jobs, and some of the full-time workers being laid off will be offered part-time positions.
St. Peter’s system treats over 23,000 patients per year, as well as 245,000 outpatient cases.
Last year, Horizon Blue Cross Blue Shield of New Jersey did not include it in tier 1 of its OMNIA insurance plan. Care providers included in Horizon’s Tier 1 plans can offer care to their patients for little or no co-pays, as well as lower premiums. In tier 2 – which St. Peter’s is included in – cost sharing is typically higher between the patient and the insurer.
St. Peter's, which is a 478-bed hospital, is currently involved in a lawsuit against Horizon for not including it in its OMNIA plan. St. Peter’s claims in the lawsuit that Horizon breached its contract with the hospital by not including it in its tier 1 plan. Horizon has vehemently denied that claim.