Seven of the 49 individuals laid off by Marietta, Ga.-based WellStar Health System last month held vice president or senior vice president roles within the 11-hospital system, according to the Cobb Business Journal.
Here are six things to know about the executive layoffs.
1. Keith Bowermaster, vice president of communications for WellStar, told the Cobb Business Journal Feb. 7 the health system cut 42 positions and canceled seven contracts "as part of a corporate restructuring to better align the organization with our strategic plan and improve operational efficiencies."
2. All seven individuals whose contracts were canceled held vice president or senior vice president roles within the health system, while some also held chief officer titles within their respective operation areas, according to the report. Mr. Bowermaster told the publication all seven individuals were offered severance packages.
3. Of the seven employees, only one individual's severance package would not be affected if she took another job elsewhere. Five former executives would see their severance packages offset or replaced by any new form of salary they receive at their new workplace during their respective severance periods, which would span from 12 to 18 months, depending on how long they were employed at WellStar, according to the report.
4. One of the seven executives reportedly accepted a different position at WellStar. The remaining six employees have until mid-April to review and accept their severance offers.
5. The individuals' severance packages reportedly include cellphone and car allowances, continued participation in the WellStar Group Health Plan and retirement packages through mid-April, among other benefits, the report states.
6. Of the 42 employees whose positions were cut, nine were employed by the health system on an as-needed basis. The remaining 33 employees included 24 full-time employees and nine part-time employees.
To access the full report, click here.