Cape Cod Healthcare, Hyannis, Mass., will eliminate 169 jobs in an effort to reduce an estimated $40 million deficit during the first half of the year, according to hospital officials.
We need to close our $25 million in operating losses and our $15 million deficit in net income to date this fiscal year, said Richard Salluzzo, Cape Cod Healthcares chief executive officer, in a news release. Our present financial performance is not sustainable.
The two-hospital systems plan also calls for reducing its use of consultants and improving billing procedures in order to cut expenses. Hospital officials expect the plan to provide a $30 million to $40 million improvement to its bottom line.
Thirty-three management positions, 87 union jobs and 36 non,union nonmanagement employees will be eliminated by the staff reductions. An additional 13 employees have accepted early retirement packages or agreed to reduce their hours. The healthcare system plans to offer severance packages to eligible employees, according to the news release. The job cuts will become effective this week. The systems Web site says the organization employs some 4,600 people. -- by Shawn Rhea