Catholic Healthcare West to Restructure, Cut 350 Jobs
To curb financial losses, Catholic Healthcare West yesterday announced plans to eliminate about 350 jobs and restructure its organization, the San Francisco Chronicle reports. CHW said it "suffered" $317 million in losses from operations, specifically from providing patient care, but that those losses were "narrowed" to $42 million after "factoring in income from investments and outside contributions." The hospital chain "blamed" its financial problems on low Medi-Cal and health plan reimbursement rates, projected seismic upgrade expenses, "soaring" pharmaceutical costs and expenses incurred by caring for the uninsured. By restructuring, CHW expects to save about $100 million -- $26 million in salaries, $35 million in benefits and workers' compensation and $40 million through "aggressive collection of outstanding debt." CHW spokesperson Lori Aldrete said that while the company has not identified exactly which jobs will be eliminated, the cuts will occur at the administrative and corporate level in the San Francisco and regional offices. CHW CEO Lloyd Dean said, "This is a major reorganization for Catholic Healthcare West. The emphasis with this reorganization will be a leaner, meaner team, and a reduction in our overhead costs" (Colliver, San Francisco Chronicle, 2/9).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.