Pinnacle lays off 21

CEO cites tough economy

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MERRILLVILLE | Physician-owned Pinnacle Hospital reported a weakening economy forced it to lay off nearly 12 percent of its work force Wednesday.

Cuts were made throughout the hospital, affecting 21 of 140 employees, hospital officials said.

An economic downturn has fewer people opting for the elective procedures Pinnacle provides, President and Chief Executive Officer Don Burman said.

"While this was a very difficult decision to make, these are very challenging economic times," Burman said in a prepared statement.

Employees will be rehired as economic conditions improve, and Pinnacle will continue to staff one nurse for every four patients, Burman said.

Nursing staff likely was minimally affected by the layoffs, Pinnacle spokesman Charles Colley said.

Officials of other area hospitals said layoffs aren't planned at their facilities.

"There are no reductions within the Sisters of St. Francis system," said Gene Diamond, regional president of the system that includes St. Anthony and St. Margaret Mercy hospitals.

Community Healthcare System, with hospitals in Munster, East Chicago and Hobart, also plans no layoffs, spokeswoman Mylinda Cane said.

Cane said Community plans to comply with a request from Pinnacle to help place employees affected by the layoffs.

"We agreed as a health care system that we would do what we could," Cane said.

Other local hospitals also will be asked to help place affected workers, Pinnacle officials said.

Pinnacle opened in mid-2007 to become one of the first physician-owned hospitals in Northwest Indiana, providing specialty services that include heart, brain, spine and orthopedic surgery.

The hospital, located at the intersection of 93rd Avenue and Broadway, also houses an urgent care center and family practice physicians. Pinnacle officials in September said the hospital had treated 10,000 patients in its first year.

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