20 laid off at Stamford Health amid projected revenue shortfall

Stamford (Conn.) Health laid off approximately 20 employees, or about 0.7 percent of its total workforce.

The layoffs are part of the health system's efforts to position itself for financial success and address the current healthcare environment, officials said in an emailed statement to Becker's Hospital Review. Stamford Health specifically cited "unexpected softness in the market resulting in flat or lower volumes in inpatient services and surgical specialties," as well as Democratic Conn. Gov. Dannel P. Malloy's hospital tax, as reasons for the workforce reduction.

Officials said the health system realized significant growth opportunities created by its new hospital facility that opened last year. These include recently announced partnerships with New York City-based Hospital for Special Surgery and Boston-based Dana Farber Cancer Center/Brigham and Women's Hospital. "However, the new facility alone will not be sufficient to create a sustainable solution," they said. 

Stamford Health President and CEO Brian Grissler added: "By taking these painful steps now, we position ourselves to preserve the financial health we need to meet our commitment to maintaining the health of our community. We regret the impact this will have on our colleagues and we thank our employees, physicians, volunteers, donors, patients and community for their understanding and support."

The layoffs come amid a projected revenue shortfall at Stamford Health. The health system said market changes, in addition to the ongoing effect of the state hospital tax and decreased reimbursements, was leading the organization to potentially have a loss of $25 million for the fiscal year ending in September. Overall, the health system eliminated 60 positions — 40 of which were not filled, reports The Advocate.


More articles on leadership:
HCA to change its name — again
Big data insights from the Becker’s Hospital Review 8th Annual Meeting
Racing toward value — Building an ambulatory platform to come out ahead

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


Featured Webinars

Featured Whitepapers