NYC Health + Hospitals eliminates 476 management positions

NYC Health + Hospitals cut 476 management positions on Friday, a move the public health system expects to yield $60 million in savings in fiscal year 2018.

The system laid off 396 employees on Friday and another 80 positions that are currently vacant will go unfilled.

"Today we've implemented a difficult but necessary action to help build a stronger, more agile, and more stable public healthcare delivery system," said Stanley Brezenoff, interim president and CEO of NYC Health + Hospitals. "By restructuring and reducing unnecessary layers of management, we can better direct resources where we need them most — at the front line of patient care."

Affected employees will remain on payroll for two weeks and receive lump sum payments for their accumulated leave times. They will keep health insurance coverage until later this month.

The elimination of the management positions comes as NYC Health + Hospitals is trying to turn around its finances. For the three months that ended March 31, the system recorded an operating loss of $673.3 million, compared to an operating loss of $349.6 million in the same period of fiscal year 2016.

The system told Becker's Hospital Review earlier this week that it is still on track to shrink its budget gap this fiscal year, despite its financial performance in the most recent quarter.

"We look forward to concluding FY 2017 (on June 30) having exceeded the $779 million gap closing identified in the beginning of the year and expecting to close with $185 million cash on hand," the system said in a statement to Becker's Hospital Review. "And we have already identified $1.2 billion in gap-closing initiatives for FY 2018."

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