Alegent Health, a nine-hospital system based in Omaha, Neb., is cutting 40 jobs from its management team and having all senior leaders take a 10% pay cut in response to declining economic conditions.
The system also announced that it plans to adopt new productivity standards to cut its workforce by 245 full-time positions by March 3, though the cuts are expected to have little effect on direct-care positions, according to a news release. Eventually some services will be streamlined and departments may be consolidated or eliminated. The system maintains a workforce of about 9,000 and a payroll of $375 million.
Wayne Sensor, the systems president and chief executive officer, cited factors widely referenced by other systems across the country that are also cutting staff, including rising levels of bad debt and uncompensated care, which are being exacerbated by a fast-moving recession, according to a news release.
Weve been seeing the signs of a gathering storm in healthcare for several years, Sensor said in the release. We are financially strong and viable, but we recognize that we need to make some changes to ensure that we stay that way during and after these uncertain times.