Catholic Health Initiatives of Englewood, Colo., the parent company of CHI St. Vincent Health System in Arkansas, will eliminate 1,500 administrative and support positions from the organization's 105 hospitals and other health care facilities across the country over the next two months, St. Vincent's top executive said Thursday.
The layoffs, however, should have no major impact on St. Vincent, which has hospitals in Little Rock, Hot Springs, Sherwood and Morrilton, said Peter Banko, St. Vincent's chief executive officer. The system's largest hospital in Arkansas is the 615-bed CHI St. Vincent Infirmary in Little Rock.
"Like all other health systems, [Catholic Health Initiatives] and CHI St. Vincent are always looking at ways to manage our costs more effectively, especially given the changing way health care is being delivered and paid for," Banko said. "That changing way is impacting organizations all across the country in not a positive way."
In a statement delivered to top managers across the country earlier this week, Cliff Robertson, Catholic Health's chief executive officer, said Catholic Health will eliminate the jobs by Jan. 30, Banko said.
In the statement, Robertson also said the health system plans to cut travel budgets by 50 percent, reduce the number and scope of consultants and contractors and hire only a limited number of staff members, Banko said.
Michael Romano, spokesman for Catholic Health, did not reply to an email seeking comment.
"How it impacts CHI St. Vincent, I can't tell you today," Banko said. "It has to be done. There will be no patient care impact. It's mainly overhead positions."
Banko said he does not know how many jobs will be cut in Arkansas and said an estimate of about 75 was "way too high."
"At St. Vincent, we've been doing this work for a while. We've been recognized as the lowest cost provider in the state and we're also the lowest cost provider within the [Catholic Health Initiatives]. So I think you'll see a far lesser impact in Arkansas."
Catholic Health has about 90,500 employees and 3,000 employed physicians at its facilities in 18 states. It has annual operating revenue of $10.7 billion.
CHI St. Vincent has about 4,500 employees in Arkansas and approximately 250 physicians. It had more than $650 million in net patient revenue and operating earnings of $45.6 million for its fiscal year that ended June 30.
In his statement, Robertson said Catholic Health Initiatives is being asked to reduce expenses "as a result of external and internal factors which have adversely impacted our overall financial performance," according to an article published Thursday by The Grand Island Independent of Grand Island, Neb.
Hospitals are seeing a decline in the number of patients, Robertson said, "we will need to continue to respond to our new normal [volumes]."
Business on 11/21/2014