23 layoffs at Harrington HealthCare System
By
Brian Lee
Telegram & Gazette Staff
Posted Nov 23, 2017 at 7:32 PM
Updated Nov 24, 2017 at 5:50 AM
SOUTHBRIDGE - Harrington HealthCare System laid off 23 employees last
week, in the wake of running an $8.2 million operating loss during
fiscal 2017, president-CEO Edward H. Moore said Wednesday.
Fiscal 2017 ended for hospitals Sept. 30.
In addition to the impacted positions, which were 1.5 percent of its workforce, the hospital system developed a new organizational structure that it says best aligns with its mission and vision to maintain high-quality patient care.
The changes were largely a management restructuring initiative, mostly focused on non-clinical areas, and represent an estimated savings of $3.5 million.
The intent was to not directly impact patient care as much as possible, Mr. Moore said.
Seventeen of the laid-off employees were managers and supervisors, including three who reported directly to Mr. Moore as part of his leadership team.
Mr. Moore said the healthcare system could not continue to lose “that kind of money” because it doesn’t want to tap into its investment and foundation money too quickly.
“We’re trying to be disciplined and make sure that the $8 million loss catches our attention to make changes, so that the loss gets down to break-even or better,” he said.
He added: “We want to remain viable and sustainable by getting our house in order relative to how much staff we can afford to carry based on volumes, and how much overhead we need in management to keep this place doing all the great things it does.”
Despite the challenging year, Mr. Moore said the system maintains a
strong balance sheet. Its investment portfolio hovers at close to $60
million, while the system carries about $30 million in debt.
“We just had a bad year relative to a loss,” he said. “But from a financial and viability standpoint, we’re still strong. I know that’s kind of counter-intuitive, when you lose $8 million. But the reality is, it’s all about having a strong balance sheet so you don’t have a financial, day-to-day crisis on your hands.”
The healthcare system, which includes the 114-bed acute-care Harrington Hospital in Southbridge, has grown tremendously during Mr. Moore’s 10-year tenure at the helm.
It assumed operations of the ailing former Hubbard Regional Hospital in Webster, now an outpatient facility called Harrington HealthCare at Webster. The facility renovated and expanded its emergency department in 2015.
It also built The Cancer Center at Harrington in Southbridge, and two medical offices in Charlton and one in Spencer.
The system also runs Harrington Physician Services, a primary care and multi-specialty physician group of more than 60 doctors in Brimfield, Charlton, Dudley, Southbridge, Spencer, Sturbridge and Webster.
Mr. Moore said the physician group is a priority for the system that needs to be maintained, yet it loses more than the hospital earns.
Meanwhile, the CEO said that the health care system has been working
with the Berkley Research Group, and after analyzing data, observing
department functions and speaking with staff, the consultant presented
Harrington with an opportunity to improve its financial performance by
approximately $15 million by the start of fiscal 2019. The proposal was
adopted by members of Harrington’s leadership.
Mr. Moore suggested that the present fiscal 2018 would be “more like a transition year” with respect to the system not expecting to assume savings right away.
“It can have a partial year effect,” he said of the plan. “We’re redefining our budget for 2018, knowing we may not get all the benefits we’d like to see. But by 2019, we hope to achieve significant savings over time.”
The CEO asserted that, because of its growth in recent years, the hospital system had been “shielded a bit” from challenges other hospitals faced.
“With that growth we were generally OK, and didn’t have to take those same kinds of measures (as others) very often. I think we only did a layoff once (before) in my 10 years here, about 3 or 4 years ago, and other hospitals have done more because they were not growing to the same degree. We were growing 8 to 10 percent some years.”
Asked if the system would continue to expand, Mr. Moore said officials are still committed to growing urgent care services and its emergency rooms, and it is opening a behavioral health facility in Putnam, Conn. in about 3 months. He said the organization believes there are “big opportunities” in behavioral health in the communities it serves.
Fiscal 2017 ended for hospitals Sept. 30.
In addition to the impacted positions, which were 1.5 percent of its workforce, the hospital system developed a new organizational structure that it says best aligns with its mission and vision to maintain high-quality patient care.
The changes were largely a management restructuring initiative, mostly focused on non-clinical areas, and represent an estimated savings of $3.5 million.
The intent was to not directly impact patient care as much as possible, Mr. Moore said.
Seventeen of the laid-off employees were managers and supervisors, including three who reported directly to Mr. Moore as part of his leadership team.
Mr. Moore said the healthcare system could not continue to lose “that kind of money” because it doesn’t want to tap into its investment and foundation money too quickly.
“We’re trying to be disciplined and make sure that the $8 million loss catches our attention to make changes, so that the loss gets down to break-even or better,” he said.
He added: “We want to remain viable and sustainable by getting our house in order relative to how much staff we can afford to carry based on volumes, and how much overhead we need in management to keep this place doing all the great things it does.”
“We just had a bad year relative to a loss,” he said. “But from a financial and viability standpoint, we’re still strong. I know that’s kind of counter-intuitive, when you lose $8 million. But the reality is, it’s all about having a strong balance sheet so you don’t have a financial, day-to-day crisis on your hands.”
The healthcare system, which includes the 114-bed acute-care Harrington Hospital in Southbridge, has grown tremendously during Mr. Moore’s 10-year tenure at the helm.
It assumed operations of the ailing former Hubbard Regional Hospital in Webster, now an outpatient facility called Harrington HealthCare at Webster. The facility renovated and expanded its emergency department in 2015.
It also built The Cancer Center at Harrington in Southbridge, and two medical offices in Charlton and one in Spencer.
The system also runs Harrington Physician Services, a primary care and multi-specialty physician group of more than 60 doctors in Brimfield, Charlton, Dudley, Southbridge, Spencer, Sturbridge and Webster.
Mr. Moore said the physician group is a priority for the system that needs to be maintained, yet it loses more than the hospital earns.
Mr. Moore suggested that the present fiscal 2018 would be “more like a transition year” with respect to the system not expecting to assume savings right away.
“It can have a partial year effect,” he said of the plan. “We’re redefining our budget for 2018, knowing we may not get all the benefits we’d like to see. But by 2019, we hope to achieve significant savings over time.”
The CEO asserted that, because of its growth in recent years, the hospital system had been “shielded a bit” from challenges other hospitals faced.
“With that growth we were generally OK, and didn’t have to take those same kinds of measures (as others) very often. I think we only did a layoff once (before) in my 10 years here, about 3 or 4 years ago, and other hospitals have done more because they were not growing to the same degree. We were growing 8 to 10 percent some years.”
Asked if the system would continue to expand, Mr. Moore said officials are still committed to growing urgent care services and its emergency rooms, and it is opening a behavioral health facility in Putnam, Conn. in about 3 months. He said the organization believes there are “big opportunities” in behavioral health in the communities it serves.
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