updated: 7/1/2013 7:33:14 AM
Federal healthcare reform and decreasing reimbursement has led a major central Indiana employer to reduce costs. St. Vincent Health says it is cutting 5 percent of its labor expense throughout the 22 hospital network. The hospital system has not officially announced the number of employees that will be affected by the move.
June 28, 2013
Indianapolis, Ind. -- Last month, St.Vincent Health officials announced the intent to restructure its workforce that would include a reduction of employed and contracted associates. As a result of evaluating an array of costs throughout the system to ensure alignment with the needs of the communities served, a 5-percent reduction of labor expense has been made across the 22-hospital system.
The faith-based health system has experienced lower than budgeted volumes, decreasing reimbursement and took proactive steps to respond to changes within the healthcare industry.
"We know the lives of many people have been affected by our decisions, and we made it a priority to treat all employed and contracted associates with the utmost kindness and respect," said Vincent C. Caponi, CEO of St.Vincent Health. "As these decisions were difficult, we are confident that our ministry will be positioned to continue to lead in the areas of quality, safety and patient experience in service to our communities across the state. We are praying for all associates and their families."
Eligible associates were provided with severance packages, and outplacement support was given to all associates, regardless of role.
About St.Vincent Health
St.Vincent Health is a nonprofit, spiritually-centered health system, sponsored by Ascension Health of St. Louis, MO, the nationís largest Catholic health system. St.Vincent Health is one of Indianaís largest employers with 22 health ministries serving central and southern Indiana. The 132-year-old health system delivers high quality, compassionate care in service areas such as cardiovascular, womens, childrens, neurosciences, cancer care, orthopedics, bariatrics, primary care, emergency medicine, imaging, general surgery and long-term acute care. For more information, visit www.stvincent.org.
Source: St. Vincent Health