Ontario, Calif.-based Prime Healthcare is eliminating about 100 positions at eight Illinois hospitals it acquired from St. Louis-based Ascension earlier this year.
“As we continue to offer and create opportunities, we are also evaluating alignment with best practices and support from our national and regional teams,” Prime said in a statement shared with Becker’s June 9. “Through this process, there is a small number of positions that are duplicated or not aligned with the care model and service line offerings — most of them not directly providing patient care — that will be consolidated.”
Prime said the consolidation affects fewer than 1% of the nearly 13,000 employees it retained from Ascension and the 1,000 new jobs it created at the Illinois facilities. No union positions are affected by the consolidation.
“Comparable positions are being offered, and all those involved are being invited to apply for any of the more than 900 open positions across our Prime Illinois facilities — including union positions,” the statement said.
A majority of the reductions were made June 6 and the remainder will take place through July.
Prime completed its acquisition of the eight hospitals on March 1. The system said it has started work on its $250 million capital commitment to the facilities, despite the hospitals losing nearly $200 million at the time of the acquisition. That commitment includes technology upgrades and service line expansions.
On May 20, Illinois’ two U.S. Senators sent a letter to Prime Healthcare CEO Prem Reddy expressing concern over changes at the hospitals, including the termination of obstetric and maternal care services at St. Mary’s Hospital in Kankakee and the temporary suspension of inpatient pediatric services at St. Joseph Medical Center in Joliet.
Dr. Reddy said in a June 2 response letter that the services were realigned due to unsustainable financial losses and low patient volumes that are associated with worse outcomes.
He also said the hospital went through several ownership changes before being acquired by Prime, and each transition “introduced distinct operational protocols, leading to inconsistent strategic policies.”
“After years of turmoil, Prime was the only health system willing and able to commit the substantial resources and effort that will be required to save these hospitals,” Dr. Reddy said.
