Akron, Ohio-based Summa Health System plans to cut 300 positions in the next month to help offset operating losses of more than $60 million this year, according to the Akron Beacon Journal.
Summa Health System recorded a $30 million operating surplus last year, yet this year it has a steep deficit, which interim president and CEO Cliff Deveny, MD, attributes to declining patient volumes, healthcare industry changes and concerns over patient access. In a memo sent to employees Monday, Dr. Deveny said abrupt changes must be made to protect the health system in the long-term, according to the report.
Approximately half of the 300 positions on the chopping block are vacant, and the system will provide outplacement services to the remaining employees. "While the primary goal is to eliminate administrative layers in the organization, all functions are affected," Dr. Deveny wrote in the memo.
In addition to job cuts, the health system plans to consolidate or discontinue various services to balance the budget.