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Fremont-Rideout Health Group Announces Consolidation of In-Patient Services and Workforce Reduction.

(Yuba City, CA) - Rideout Health Group (FRHG) has announced plans to consolidate services between Fremont Medical Center (FMC) and Rideout Memorial Hospital. All in-patient services will be moved to Rideout, with the exception of women's health and outpatient radiology as of May 1.

                Fremont Medical Center will expand Maternity services to two floors allowing for all private rooms for moms and babies. Approximately 2200 babies are born at Fremont Medical Center every year.

                Feather River Surgery Center will continue to operate in Yuba City for outpatient surgical services.

                As a result of the consolidation, approximately 185 non-nursing positions have been eliminated.

                Additionally, while 90 nursing positions have been eliminated at Fremont, all Fremont Medical Center RNs are eligible to apply for 115 newly opened nursing positions at Rideout.

                All displaced employees have been given 60 days' notice and will be given severance packages commensurate with their service and experience as well as two months of health care coverage under COBRA health benefits continuation program.

                FRHG has contracted with Sutter One-Stop to work with all affected employees in resume building, career transition, unemployment applications and interview skills. One Stop will also put displaced employees in touch with California Jobs database, connect with other employers who are hiring in the area and they are available to help employees onsite at Fremont and Rideout Hospitals. For more information visit www.sutteronestop.com.

                The consolidation and layoffs were necessary to offset significant revenue and operating losses resulting from the continued poor performance of the nation's overall economy, staggering amounts of uncompensated care, competition and additional challenges specific to the health care industry in California.

                As a result of these factors, FRHG has been suffering losses of approximately $1 million per month dating back to last summer. Last year Fremont Medical Center and Rideout Memorial Hospital combined provided more than $30 million in uncompensated care. Those numbers are expected to increase significantly this year.

                Additional cost-cutting decisions have been implemented, including reductions to capital expenditures, travel and other discretionary spending. FRHG also recently consolidated its senior leadership and leadership teams.
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