Adena Health System is eliminating 69 positions — 1.6 percent of its workforce — and sending 340 revenue cycle department employees to Ensemble Health Partners' payroll in a move President and CEO Jeff Graham hopes will boost the health system's financial stability.
"Simply put, Adena’s finances need to remain in good health so that we can continue to help the people of our region to be in good health," Mr. Graham wrote in an op-ed published on Adena's website. "Consequently, we gave thoughtful consideration to the opportunity to strategically realign our resources to help reduce costs, remain financially strong and fortify our commitment to patient care."
Chillicothe, Ohio-based Adena announced the restructuring in mid-January to phase out some positions throughout the organization while continuing to strategically hire in others. Mr. Graham said half of the staff in affected positions are qualified to fill open roles at the system, and the remaining employees will be eligible for severance and outplacement assistance.
The 340 revenue cycle employees who are transitioning to Ensemble will maintain their current salary and seniority when the change goes into effect March 5. Adena has partnered with Ensemble since 2018 and many of the transitioning employees are remote.
Mr. Graham cited the increased costs for hospital operations and inadequate reimbursement for care as primary reasons for the cost-cutting measures. He noted the average hospital expense per patient discharged is up nearly 30 percent since 2019, driven by the nursing workforce shortage.
"Frankly, we could no longer absorb those soaring costs, nor can we continue to accept inadequate reimbursement for care," he wrote.