BLUE HILL (AP) – Layoffs are in the works at Blue Hill Memorial Hospital in its effort to stave off bankruptcy.

In a letter to employees, interim administrator Dr. Erik Steele said the hospital is in danger of going off a “financial cliff” and that staff reductions are inevitable.

Steele wrote that the hospital in recent weeks has been putting off creditors and has sold investment stocks to make its payroll. He said the immediate goal is to increase cash flow by $250,000 a month without hurting patient care.

Maine Hospital Association President Steven Michaud says virtually every hospital in the state is reporting a drop in business, driving down revenues.

He said people are presumably putting off medical procedures because of the weak economy and increases in insurance deductibles and other out-of-pocket costs.

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