Home Industries Health Services Lifespan restructuring several positions as part of executive layoffs

Lifespan restructuring several positions as part of executive layoffs

Updated at 3:23 p.m.

By

Katie Castellani

-

09/24/2024

RI-Hospital-1-696x385-1 — LIFESPAN CORP. has combined and created several new roles as part of its plans to cut 20% of its executive staff./COURTESY OF LIFESPAN

PROVIDENCE – Lifespan Corp. has combined and created several new roles as part of its plans to cut 20% of its executive staff. The state’s largest health system is planning to implement dual roles for all hospital presidents and chief medical officers – though the set up will vary by hospital, CEO John Fernandez said

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PROVIDENCE – Lifespan Corp. has combined and created several new roles as part of its plans to cut 20% of its executive staff. The state’s largest health system is planning to implement dual roles for all hospital presidents and chief medical officers – though the set up will vary by hospital, CEO John Fernandez said in a memo sent to staff Monday that was obtained by PBN. As part of the restructuring, Lifespan has eliminated the role of Newport Hospital’s president – which was held by Crista Durand for 10 years – and created the position of Newport Hospital president and chief medical officer. Becker’s Hospital Review reported that Lifespan confirmed Durand was laid off. Durand made $678,894 in fiscal year 2022, according to Lifespan’s Form 990, which is filed with the Internal Revenue Service. According to Lifespan’s website – which still includes Durand as an employee – Dr. Jeffrey Gaines is chief medical officer and vice president of medical affairs at Newport Hospital. Fernandez said Maria Ducharme serves as both president of The Miriam Hospital and chief quality officer. Dr. Mark Deitch has served as chief medical officer and senior vice president of medical affairs at The Miriam Hospital, according to Lifespan’s website. Lifespan spokesperson Jessica Wharton confirmed Deitch was not laid off. Fernandez said Sarah Frost is chief of hospital operations and president of Rhode Island and Hasbro Children’s Hospitals; Dr. Dean Roye is chief medical officer for Rhode Island and Hasbro Children’s Hospitals along with being responsible for the systemwide Epicenter. Lifespan has also created a systemwide chief nursing executive role, who will serve as the leader for nursing across the health system. Fernandez said more details on the position would be shared in the coming weeks. The new chief nursing executive position will also serve as chief nursing officer for both Rhode Island and Hasbro Children’s hospitals and report directly to Frost, Fernandez said. So, the chief nursing officer position at Rhode Island Hospital, which was held by Cynthia Danner who was also chief nursing officer for Hasbro Children’s Hospital, has been eliminated. Also, chief nursing officer positions at Miriam and Newport Hospitals have been restructured, Fernandez said. Though each acute care hospital will have a chief nursing officer, they will report to hospital presidents for day-to-day operations and report to the systemwide chief nursing executive for everything else. Along with these changes, Lifespan has eliminated several positions across departments including human resources, finance, strategy planning and analysis. Fernandez said meetings will be held with affected departments to begin a transition process. “It’s always difficult to eliminate and restructure positions and to say goodbye to our colleagues and friends, and we are grateful to all the people impacted for their many valuable contributions over the years,” Fernandez said in the memo. “Our objective is to optimize operations, allocate more resources directly to patient care and strategically invest in our academic programs.” The layoffs are expected to save the health system $6 million in fiscal year 2025. Though Lifespan has approved a merit pay program for 2025, executive salaries will be frozen, Fernandez said. The layoffs, announced Sept. 20, come as Lifespan is rebranding as “Brown University Health” through an affiliation agreement with Brown University. Also, the health system is in the process of purchasing two Massachusetts hospitals – St. Anne’s in Fall River and Morton in Taunton – from Steward Health Care, which filed for bankruptcy in May. Lifespan offered $175 million for the hospitals and the transaction is expected to close by Oct. 1. Financial reports show Lifespan has fallen behind on its fiscal targets for the year. Though this doesn’t come as a surprise as Peter Markell, Lifespan’s chief financial officer, said earlier this year that the health system was likely not going to hit its goal of a 3% operating margin for 2024. Markell told reporters in August the health system’s fiscal year 2025 budget has Lifespan reaching a 3% operating margin. “But we have to execute on some things,” he said. Fernandez emphasized this in the memo, saying it’s important to generate a 3% operating margin in fiscal year 2025 “... to reinvest in our people, technology and facility improvements.” (UPDATE: Confirms Deitch still with Lifespan in 4th paragraph.) Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.