TriHealth eliminates 440 positions to cut costs

Cincinnati-based TriHealth is cutting 440 positions as part of a plan to trim at least $140 million in expenditures this year, according to the Cincinnati Business Courier

Of the 440 positions being eliminated, 150 are now vacant. As a result, 290 current employees will have their jobs eliminated. Most of the affected employees work in shared corporate services, including revenue cycle, marketing, human resources and information technology. No physicians or nurses will be affected by the job cuts, TriHealth President and CEO Mark C. Clement told the Cincinnati Business Courier

Those affected by the job cuts will be notified between June 22 and June 30. They will receive a severance package and full salary and benefits for 60 days. 

The health system is cutting costs to offset revenue losses tied to the COVID-19 pandemic. It lost about $100 million after suspending elective surgeries from mid-March to mid-May. Though patient volumes are beginning to recover, they still aren't at pre-pandemic levels.

Trihealth is "operating at 90 percent to 95 percent of previous baselines, meaning pre-COVID-19 activity levels and revenue," Mr. Clement told TV station WKRC. "For TriHealth, just a 5 percent reduction from where we were in the past represents $100 million in revenue." 

The health system is implementing the job cuts after its senior leadership team took a 20 percent pay reduction in late March. At that time, the health system said the goal was to avoid layoffs. 

More articles on healthcare finance:
7 health systems report $1B+ losses in Q1
Illinois health consulting firm files for bankruptcy
North Carolina hospitals defeat billing fraud lawsuit



© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Featured Webinars

Featured Whitepapers