Executives at Beaumont Hospitals are taking salary cuts of 4% to 10% as part of a turnaround plan that includes cutting 500 jobs and slowing down construction projects at the Royal Oak, Mich.-based system.
Up to 165 people are facing layoffs, though some of them could find different jobs in the system. About 200 jobs have already been eliminated through attrition, and officials expect to cut another 135 that will voluntarily open up in coming months among the systems 18,000-person payroll, spokesman Bob Ortlieb said.
Chief Executive Officer Kenneth Matzick, who is taking a 10% salary cut, said in a written release that he aims to improve the not-for-profit systems financial performance by $60 million in 2009. In addition to personnel changes, Beaumont Hospitals plans to slow down ongoing construction projects at hospitals in Royal Oak and Troy, put on hold the plans to build additional ambulatory medical centers and increase revenue by negotiating with payers and improving billing processes.
The system is only the latest to announce triple-digit layoffs. This week, 868-bed MetroHealth Medical Center, Cleveland, announced 112 job cuts, and 367-bed St. Johns Regional Medical Center, Joplin, Mo., announced 160. News outlets reported several thousand job cuts at hospitals across the country in October and November, despite a Nov. 7 Bureau of Labor Statistics report showing steady growth in healthcare employment for the 10th straight month in October. -- by Joe Carlson