WALLINGFORD - Gaylord Hospital laid off 11 employees Tuesday after reporting a $2.5 million operating loss at the end of last year. The layoffs, including three management positions, are less than a 2 percent reduction in the hospital's workforce of 556 employees.

The layoffs in non-management positions were in support services, said Cynthia Whitcomb, the hospital's public relations and marketing director. The hospital did not lay off any employees working at patient bedsides, she said.

"That was our priority, that we would not compromise patient care," Whitcomb said.

In a prepared statement, Gaylord's president and chief executive, James Cullen, called the job reductions "a very difficult decision, yet it is crucial in today's economy for any organization to be fiscally responsible."

Along with the workforce reduction, Gaylord is suspending the hospital's contribution to employee 401(k) plans for this year. The move, approved by the hospital's board of directors, could save as many as 25 jobs, Whitcomb said. It also allows the hospital to maintain wage increases, she said.

Whitcomb attributed the operating loss for 2008 to less-than-projected patient volumes across all services.

A not-for-profit acute long-term care hospital, Gaylord specializes in rehabilitation and treating patients with medically complex conditions. The hospital offers outpatient and inpatient services at the main Wallingford campus, and outpatient services in North Haven and Woodbridge. Gaylord also runs sleep centers in Bridgeport, Glastonbury, Guilford, North Haven and Trumbull.

With the completion of $22 million expansion at the end of 2008, Gaylord opened a new 36-bed main campus pavilion that brought the hospital's total inpatient bed count to 137.