AM I NEXT? THE HANDWRITING IS ON THE WALL AT CATHOLIC HEALTH (03/04/22)

Am I Next? Catholic Health hiring freeze may precede layoffs if losses continue.

MARCH 4, 2022 — 34 IT AND SUPPORT WORKERS LAID OFF

According to Catholic Health, 34 jobs in Information Technology and other corporate service positions were eliminated.

Mark Sullivan, president, and CEO of Catholic Health noted, "Affecting a person’s livelihood through a workforce reduction is an extremely difficult decision to make. Our system, like all healthcare providers in Western New York, is being faced with unprecedented financial challenges from pandemic recovery to accelerating labor costs. The lack of recognition and action by local insurance companies and some elected officials makes these decisions just the beginning of what is to come for other health providers in our region. We hope those in power have the courage to address these challenges immediately and realize this current path will lead to limiting access to care in our region, which would be truly unfortunate."

NOVEMBER 23, 2019 — 200 EMPLOYEES TARGETED IN DEC/JAN LAYOFF

Catholic Health has announced a reduction in force of about 200 employees, half of which will be the result of employee buy-outs and early retirement offers. Layoffs will be phased over the coming two months.

According to Catholic Health's President and CEO Mark Sullivan…

"We are taking a methodical and measured approach to deal with the constant state of change health care providers across the country are experiencing while ensuring we continue to develop and deliver the type of care our patients have come to expect. This means reinventing how we deliver the highest quality care to our community now and in the future.

“Decisions like this are never easy, and we will support our associates affected by these changes. While difficult, however, the proactive steps we are taking today — along with ongoing efforts to transform care, expand needed services, and address inadequate reimbursement with area payers that have not kept pace with the changes in healthcare delivery — will make us stronger long-term.”

SEPTEMBER 22, 2019 — Original post …

The handwriting is clearly on the wall for the employees of Buffalo-based Catholic Health whose mid-year operating deficit is now approaching $16 million dollars in a difficult health care environment. The company has implemented a hiring freeze on all positions with the exception of pre-approved clinical staffing. CEO Mark Sullivan noted that the hiring freeze is one facet of the company’s cost reduction initiatives and describes it as a “course correction.” Further adding, “Besides reductions in the way we are compensated for the care we provide, these losses are further compounded by the fact that annual reimbursement increases we receive from insurers fall significantly below typical healthcare inflation.”

Like most health care providers, Catholic Health, with five hospital campuses, a long-term care site, a home care division and outpatient sites, is experiencing a declining patient census and the ramifications of significantly reduced insurance reimbursements, especially those associated with Medicare and Medicaid.

According to a media spokesperson, "While we continue to see market share growth in various areas, with more patients coming to Catholic Health because of our high quality, we are continually assessing the needs of our organization and our workforce as healthcare continues to evolve."

According to the industry lobbying group American Hospital Association, “Medicare and Medicaid accounted for more than 60 percent of all care provided by hospitals. And, “payments from the two government programs were $76.8 billion less than the cost of care in 2017” while “Hospitals provided another $38.4 billion in uncompensated care in 2017 for the uninsured or patients who didn't pay their portion of a bill.”

One can only imagine the effects of the single-payer system now being labeled by 2020 presidential candidates, falsely, as “Medicare for All.” Each of the proposals, while somewhat different, would eliminate private insurers and allow the government to dictate everything from care levels to staffing.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?