Job cuts on the horizon at Detroit Medical Center due to organizational changes

Detroit Medical Center is making changes to its organizational structure, including an unspecified number of job cuts, according to a letter sent to employees Monday by Tony Tedeschi, MD, DMC's CEO.

The transformation plan, developed after a comprehensive market and competitive analysis, focuses on eight key areas: safety, quality, people, patient and family experience, ambulatory, community partnerships, education and research, and cost structure.

Dr. Tedeschi said he already made efforts last year to cut 14 management positions from the market leadership team. Further consolidation in that area is expected.

Additionally, as DMC continues to make organizational and leadership changes, it will reduce its workforce. Dr. Tedeschi did not specify a number of job cuts, but said reductions will occur "in coming weeks over the next month."

He went on to say many existing jobs will likely change as DMC moves forward. The medical center will need to place some current employees in new assignments, as well as hire some new workers. DMC said it will try to place as many displaced workers as possible in new positions at the organization, but it inevitably won't be able to do that for everyone.

Overall, Dr. Tedeschi attributed workforce and leadership changes to  trends in the U.S. healthcare industry, such as declining government reimbursements, the popularity of high-deductible health plans and a shift toward more outpatient care. He also attributed the changes to market challenges and opportunities for the medical center, such as needed improvement in patient satisfaction and quality scores.

"We will and we must continue to invest strategically in our business to enhance our medical care services, respond to the needs and preferences of the community, strengthen our competitive position and grow our patient and revenue base," he said. "As we do that, however, we must flatten our organization to increase accountability and improve operations. Improving efficiency will lead to cost savings that enable DMC to continue to invest in its future; and by increasing accountability and improving operations, we will drive improvements in care delivery and patient satisfaction."



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