Memphis, Tenn.-based Methodist Le Bonheur Healthcare will discontinue a service and reduce the size of its workforce as part of a restructuring plan.
In a news release shared with Becker’s, the six-hospital health system said the changes follow careful analysis of operations and current patient volumes.
“These changes align with our goal of maintaining long-term strength and high-quality services,” Executive Vice President and COO Monica Wharton said in the release.
As part of the changes, Methodist Le Bonheur Healthcare will consolidate labor and delivery services currently provided at Methodist South Hospital in Memphis with those at Methodist Le Bonheur Germantown (Tenn.) Hospital and Methodist Olive Branch (Miss.) Hospital, effective Aug. 1.
The health system cited a consistent decline in birth volumes in the Methodist South service area, including a 43% drop in deliveries over the past five years, as contributing factors in the decision. Methodist South’s emergency department will continue to care for patients with obstetrics-related emergency care needs.
Also, as part of the organization’s realignment, Methodist Le Bonheur Healthcare is cutting about 161 jobs, which will affect about 1% of its 12,000-person workforce.
The health system said 80 affected employees are expected to find new roles within Methodist Le Bonheur Healthcare, and that those who do not will be offered severance pay and career transition support. The organization also noted that the layoffs have been implemented at various system locations “based on the specific needs of that location and the community it serves.”
All of the changes are part of the system’s PATH (Planning, Alignment, Transformational and High Performance) Forward plan.
“As part of our mission to serve the entire community, we regularly examine our service offerings and processes to ensure that they align with community needs and follow best clinical practices in a rapidly changing healthcare environment,” Methodist Le Bonheur Healthcare President and CEO Michael Ugwueke, DHA, said in the release. “Our PATH Forward reaffirms our commitment to the Memphis area.”
