NO LOVE AT ST. MARY-CORWIN MEDICAL CENTER (PUEBLO, COLORADO)

Another regional medical center, St. Mary-Corwin Medical Center in Pueblo, Colorado, has announced a major restructuring that result in the loss of approximately 300 employees will include the loss of nearly 300 jobs and a reduction in active patient beds from 114 to 42.

The hospital’s CEO, Mike Cafasso, said that the changes are part of a "new strategic direction" and the implementation of "bold, transformative initiatives" to sustain viability while maintaining quality care. The hospital will focus on their core competencies, namely widely-recognized cancer care and orthopedic services, including a state-of-the-art joint replacement center and a new master-planned medical center campus. 

It appears that there will be a greater outreach to community physicians and other facilities, especially competitor Parkview Medical Center, a private, non-profit licensed for 350 acute-care beds and provides a full range of healthcare services including the region’s only certified and verified Level II Trauma Center as well as the region’s first certified Stroke Center. Parkview’s executives appear to be upset at Centura Health, St. Mary-Corwin’s parent, for not engaging in joint planning to assure the continuity of care to patients who must seek healthcare elsewhere.  

The hospital’s finances have been characterized as stable, but stagnant and unsustainable. Cafasso explains, "Our efforts to move things forward and to sustain growth have not been successful, so it's time to focus on fewer services and try to grow those, and try to regain financial footing and go from there. We can't continue to be all things to the community." 

Are you asking yourself, Am I Next?

NO LOVE AT PREMIER HEALTHCARE

Premier, Inc., the Ballantyne, North Carolina-based healthcare solutions company, is reported to be engaging in a cost-cutting exercise that will result in reducing their workforce by at least 75 workers. The company provides “purchasing and performance improvement services to a network of 3,900 hospitals and 150,000 provider organizations.” The company’s 8-K filing with the Securities and Exchange Commission was laden with corporate speak. “As part of the Company’s ongoing integration synergies and efforts to realign resources for future growth areas, management is implementing certain personnel adjustments, including a workforce reduction. The majority of employees impacted by these personnel adjustments are from the company’s Performance Services segment.” 

Premier’s moderately-priced publication, Economic Outlook, “highlights emerging economic and industry trends to put healthcare executives ahead of the curve. Each edition of the Outlook reveals key financial, clinical and supply chain insights from a diverse range of industry experts” and “full of actionable knowledge on best practices and strategies to improve your organization’s performance – all drawn from the industry’s most progressive leaders.”

And yet I find it somewhat ironic that Premier is laying off employees to achieve pre-tax cost savings rather than growing their business in a time when medical institutions and care providers are merging, Medicare and Medicaid reimbursement rates are plummeting and Premier's services and strategic advice is sorely needed.   

Are you asking yourself, Am I Next?

NO LOVE AT THE UNIVERSITY OF ARKANSAS FOR MEDICAL SCIENCES

It appears that the end is not in sight for layoffs at the University of Arkansas for Medical Science, said to target approximately 45 tenured and tenure-track faculty members in addition to the elimination of 600 positions, a combination of unfilled positions and a layoff affecting 258 employees. 

Dear UAMS Family,

As I said in our December Town Hall meeting, we must cut in excess of $30 million in expenses this current fiscal year to comply with our budget as approved by the University of Arkansas Board of Trustees. UAMS has had financial challenges for many years and we have always made up for any shortfall by using our reserve funds. However, we are depleting our resources and we cannot continue to do that and sustain UAMS into the future. 

Over the last several weeks, UAMS leadership has been conducting a comprehensive review of all areas of UAMS to identify cost savings and make adjustments. However, personnel is our largest expense and we have come to the extremely painful realization that we can’t meet our budget without also eliminating jobs. We have no choice but to reduce our workforce by almost 600 positions. We have made every effort to cut unfilled positions where possible, but 258 of the affected positions are currently occupied. The employees whose jobs are being eliminated are being notified today. Human Resources representatives will also be reaching out to them to provide services to assist them in finding other jobs.

I have been at UAMS for more than 26 years. This is an extremely sad day and the first major reduction in force that I can remember. This is not an action that anyone is taking lightly and it is not being undertaken because of performance issues but simply because we do not have the money to fund everything we have in the past. We must all support each other and especially those colleagues who are leaving us. We are very grateful to them for their many years of service to UAMS and our state.

Sincerely,
Stephanie Gardner, Pharm. D., Ed.D.
Interim Chancellor

The proximate cause of the layoffs given by management is a $30 million shortfall in the UAMS $1.5 billion budget. Ironically, nothing is being said about senior management whose lavish salaries, perks, and privileges seem excessive; especially the Dean of Medicine who is reputedly paid $600,000 while being allowed to work abroad for months in Sweden. 

No reason was given for the shortfall. 

Are you asking yourself, Am I Next?