In an effort to reduce costs, Genesis Health System planned to cut 80 jobs and some employee benefits.
The announcement was made on Friday, May 2, 2014 that the health system was cutting about 30 management positions, which include its Chief Operating Officer and Senior Vice President, and about 50 staff-level jobs.
Also, to help reduce costs, Genesis CEO and the remaining executive team are taking a voluntary pay cut.
Employees will see revisions to their health insurance plans within their benefits packages. The employer “match” to contributions employees make to their retirement accounts will be temporarily reduced.
The decision to undertake these reductions in benefits is regrettable,” said Genesis’ Vice President, Ken Croken. “But, on balance, it is greatly preferable to a deeper reduction in jobs.”
Employees impacted by these changes were set to be notified by May 16.
Consolidating some of their services at their East Rusholme Street campus in Davenport is also expected to help reduce costs. On the campus there, plans for a multi-million dollar building with “state-of-the-art” facilities have been unveiled – click here.
Croken added that Genesis is just one health system among many others in the country facing financial challenges as healthcare providers transition from “traditional fee-for-service health care” to a “population health and wellness approach.”
“These are national issues, not local ones,” Croken said. “Today, more than 60 percent of American hospitals are running ‘red ink’ and other world-class health providers are taking similar actions.”
A spokesperson from Genesis said the health system employs about 5,200 people.