The Free Press, Mankato, MN

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May 29, 2009

Mankato Clinic to cut 50 jobs

Most cuts the result of new electonic records system

By Tim Krohn

MANKATO — The Mankato Clinic has completed a $2.4 million electronic records system that, coupled with the flagging economy, will result in the permanent reduction of 50 employees.

Randy Farrow, Clinic CEO, said they anticipated most of the reductions because of efficiencies brought on by the electronic system, but the recession added to the need for fewer staff.

“We’re being impacted like everyone with the economy,” Farrow said.

“We had a sizable staff handling all the paper. We were really paper intensive and needed to streamline and be more efficient,” Farrow said.

“Health care is probably behind other industries in automation. It’s always painful to have reductions, but I believe the automation is definitely the right step.”

The automation allows patients’ records, test results and X-rays to be available instantly and viewable by multiple health-care providers simultaneously.

The clinic estimates the efficiencies created by this new technology will translate into annual cost savings of nearly $1.8 million.

Most of the job cuts come in the areas of transcription, medical records, clerical and reception.

Farrow said impacted employees will receive severance packages and continuation of health-care benefits for a period of time. The job reductions will take place during the next few months.

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