Kennewick, Wash.-based Trios Health, part of the Kennewick Public Hospital District, is reducing its workforce through various measures, including layoffs, according to a Tri-City Herald report.
The system said the workforce reduction is part of a restructuring plan assembled by management consulting firm Quorum Health Resources to improve district finances, according to a news release.
"The Quorum report concluded that our operations were not sustainable without significant financial and operational adjustments," Marv Kinney, KPHD board president, said in the release. "We are actively course correcting as it is our intention to continue to serve the Tri-Cities."
Under the restructuring plan, Trios Health reduced 95 full-time equivalents as of April 1. Trios Health said the 95 FTE reductions were accomplished through various means, including attrition, scheduling and work hour changes, voluntary layoffs and involuntary layoffs. Approximately 23 percent of the FTE reductions were involuntary layoffs. This means roughly 25 employees were involuntarily let go, according to the report.
The involuntary layoffs affect employees in ambulatory care/pre-operative services, pharmacy, administration, medical staff services and urgent care within Trios Health's hospital and Trios Medical Group, among other departments, reports the Tri-City Herald.
"As we worked through the process we had ongoing conversations with our unions and have kept our providers and staff in the loop at every turn over the past two months, including the sharing of Quorum's plan — all 401 pages," Trios Health Interim CEO Craig Cudworth said in the release. "We took due care to notify affected individuals a couple of weeks ago so there were no surprises. It was and remains a priority to offer dignity, respect and transparency to all affected, whether by their choice or not. Losing colleagues hurts. We are friends, neighbors and even family. This is a very difficult time for us."
In addition to the reduction of 95 FTEs, Trios Health also plans to reduce an additional 20 FTEs in the next several months. The system said the 20 FTEs will be reduced through "additional attrition, hourly adjustments relative to patient volumes/need and additional opportunities identified by employees."
"We will diligently watch our productivity numbers to meet our targets," Mr. Cudworth said. "We are already seeing early indications that we are on the right track."
Overall, Trios expects to save about $4.3 million annually through the total reduction of 115 FTEs.
More articles on leadership:
Week in review: 12 biggest healthcare stories this week
Trend: Making the CEO part of your hospital's brand
16 phrases CEOs never want to hear