Cheyenne, WY (KGWN) - Hospitals around the country are slashing their budget and Cheyenne Regional Medical Center has announced they'll be doing the same.
CRMC will be cutting millions from its budget over the next two years in what they're calling a "strategic cost improvement plan" and the results could also wind up being big savings for patients.
Cheyenne Regional Medical Center generates millions of dollars in revenue every year, but in recent years they've seen in-patients revenue drop significantly.
"Our overall in-patient revenue is down about $20 million in budget which is pretty substantial for a small community hospital," said Kerry Warburton, Chief Financial Officer for CRMC.
This has led the hospital to begin a cost saving measure that will be implemented beginning this September.
"It's designed to take three percent of our cost out of our cost structure," Warburton said.
That equals out to approximately $17 million in savings over the next two years.
CRMC says this is good news for patients because no cuts will involve eliminating services to the community.
"We will be looking at processes and efficiencies, really to improve our cost structure and also at the same time improving our quality and our service delivery," said Warburton.
Employees at the hospital will not be targeted as a way to save money.
"There will be no layoffs, there will be no hiring freeze and one of the reasons we're calling this a strategic initiative to avoid those types of things," Warburton said.
There are also no planned salary cuts.
Warburton says the market has shifted to payers looking for ways of treating patients at the lowest cost and CRMC wants to partner with that process.
"We're working with all payers, whether they're commercial payers or government, to make sure that we treat patients in a lowest cost setting," said Warburton.
Cheyenne Regional Medical Center does not know exactly where the savings will come from at this point. They plan on doing extensive research to find areas where they can improve their cost structure.