Bristol (Conn.) Health CFO, Tim Ajayi, addressed how the health system is dealing with sustained financial challenges and its future plans for growth in an interview with Becker's. The conversation follows a report of just under 17 days of cash on hand for the system, which operates 20 locations anchored by Bristol Hospital and employs almost 1,800 people.
Bristol Health also reported an operating loss of $16.5 million on $209.2 million of revenues for the year ended September 30, 2022.
Question: Are there plans for any layoffs? (Note: There have previously been some "small" layoffs within the system.)
"We are not planning any layoffs. We believe decreasing our agency staffing is key to managing our labor costs," Mr. Ajayi said. Such lower reliance on agency staffing could result in $5 million savings, he added. "We are also looking to recruit in primary care."
Q: How can Bristol return to a stronger financial position?
"We have a very robust plan to return to a positive operating margin," Mr. Ajayi said. This will include state-funded money totaling $5 million. "We were cash positive in June and able to replenish some of our reserves."
Q: Can Bristol survive alone or will it need to look at stronger partnerships?
"The board is constantly evaluating our need to join a larger system to achieve our mission. Key for them is the need to sustain local services, our culture and quality outcomes. We are not planning for a white knight to come and save us. I can see bright prospects for the hospital. We have come a long way and there is a plan, and you can see the runway," Mr. Ajayi said.