Southeast Montana News

RiverStone Health, a leading healthcare organization, has been forced to implement budget cuts and staff reductions due to a loss of over $3 million in Medicaid revenue this fiscal year. The financial shortfall has led to the notification of 29 employees that they will be part of a workforce reduction set to take effect in mid-June.

The cuts represent nearly 9% of RiverStone Health's total workforce, affecting employees across the organization, including those previously impacted by program closures. In addition, several senior leadership positions and managerial roles have been consolidated or eliminated as part of these cost-saving measures.

"Everyone impacted by these reductions plays a vital role in protecting life, health and safety. The elimination of these positions does not diminish the incredible difference they’ve made in serving our community," said Jon Forte, RiverStone Health president and CEO.

RiverStone Health is grappling with the impacts of inflation like many other hospitals and healthcare organizations. The rising costs, lower-than-expected patient volumes for primary care services, and stagnant reimbursement rates have been further complicated by the Medicaid redetermination process that began in April 2023.

Despite efforts to maintain enrollment for all eligible Montanans in Medicaid, RiverStone Health has witnessed a significant drop in the number of enrolled Medicaid patients. As a Federally Qualified Health Center, RiverStone Health provides medical, dental and behavioral healthcare for everyone, regardless of their ability to pay. However, as more Montanans lose healthcare coverage due to inefficiencies in the Medicaid unwinding process, the burden of uncompensated care affects both patients and staff.

"Unfortunately, it is impossible to further reduce expenses without impacting our dedicated team members," said Forte. "Montana’s Medicaid reenrollment process has created hardships for over 134,000 Montanans. Now it is directly impacting our dedicated healthcare professionals who cared for them with compassion."

Employees affected by these changes received a support package that included a 30-day notice and access to employee assistance and support services. Eligible employees will also have the opportunity to apply for limited internal vacancies as they become available.

"Despite these challenges, our commitment to our community is unwavering," Forte said. "RiverStone Health will continue to meet the public health needs of Yellowstone County and continue providing high-quality care and support to every individual who walks through our doors, regardless of our financial constraints or theirs."