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Fremont-Rideout Health Group Announces Organization-wide

October 26, 2009 (Yuba City, CA) - In response to the extended downturn in the national economy and trending declines in patient census and surgical volumes, Rideout Health Group (FRHG) announced today several steps designed to reduce its operating costs.

As part those actions, 40 positions representing approximately two percent of the 2,100 people FRHG employs in the Yuba City and Marysville communities, are being eliminated. In addition to the staff reductions, FRHG has initiated an intensive review of its entire operating system to identify opportunities to reduce other non-labor-related costs.

All displaced employees will be offered a severance package and career transition assistance.

"Workforce reduction decisions are the most difficult that senior management ever face," explained Theresa Hamilton, Chief Executive Officer of FRHG. "We deeply regret having to eliminate any positions. However, like hospitals regionally and nationally, we have seen a continued decrease in patient census and elective procedures concurrent with an increase in unrecoverable debt. We have a fiduciary responsibility to our entire organization and the community we serve to remain as viable as possible, particularly in times of challenge.

"We remain committed to providing exceptional, care close to home," said Hamilton. "We are continuing to invest in our employees with competitive wages and benefits, in our facilities with ongoing maintenance and equipment upgrades, and in our clinical programs and services through the recruitment of highly qualified physicians and a focus on critical service areas in order to meet the healthcare needs of our community."

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