Care New England announces more layoffs

DENNIS KEEFE, president and CEO of Care New England, said restructuring efforts are continuing at the health care system. / COURTESY CARE NEW ENGLAND
DENNIS KEEFE, president and CEO of Care New England, said restructuring efforts are continuing at the health care system. / COURTESY CARE NEW ENGLAND

PROVIDENCE – Saying the health care organization “is in the midst of challenging times,” the president and CEO of Care New England said restructuring efforts will continue and nonunion employees will be laid off.

Dennis Keefe, the president and CEO of CNE, released a memo to management on Wednesday about the plan to restructure departments. While the exact number of employees was not divulged in the memo or by a CNE spokesman, Keefe wrote that “there will be a reduction in workforce at all levels of staff in corporate services and a few other departments.”
The latest restructuring comes on the heels of an announcement by Keefe made early last month regarding the elimination of three executive positions to save money.

“A month later, we continue to experience low patient volumes in key service areas, which are causing a significant gap in our budget targets. Therefore, we are introducing more restructuring initiatives that predominately affect corporate services departments,” Keefe wrote.

Keefe noted that work to streamline processes to improve workflow and clinical outcomes has been underway this past year, and that during that process, corporate services were not affected as significantly as others because it was expected that adjustments would be made as a result of the merger with Southcoast Health.

However, the merger was called off in October.

“Given the decision not to affiliate, coupled with a financial trend that makes achieving a breakeven year nearly impossible without making changes, we must take a closer look at opportunities to reduce corporate overhead. Additionally, during the past two months, each operating unit drafted operational improvement work plans that identify opportunities to increase revenue and volume. These are based on an analysis of data and were developed by operating unit executive leadership,” Keefe said.

Keefe acknowledged in the memo to management that the news will be difficult to deliver, especially as the eliminated positions are held by individuals who have performed well for the organization.

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“I wish this was not the reality we are facing, but we must address the issues at hand as good stewards of our organization and the health care services we provide to our community,” Keefe wrote.

Patrick J. Quinn, executive vice president of District 1199 SEIU New England, issued the following statement: “The recent announcement of layoffs at Care New England is unfortunate. While these layoffs do not apply to 1199 members because of the strong job protections we have won by uniting together, as an organization we are always sympathetic to the stress and upheaval people go through when they lose their jobs. Regardless of the uncertainty in today’s climate, we will continue fighting for a strong health care system in Rhode Island that ensures adequate investments in frontline care and good jobs for our caregiving workforce.”

The union represents more than 2,300 hospital workers at Women & Infants and Butler hospitals.

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