FALL RIVER — Southcoast Health System Inc. reported 50 new layoffs Friday afternoon, citing a $38 million operating loss including costs related to restructuring and higher-than-budgeted losses from the Southcoast Physicians Group.
Some laid off employees may be rehired to staff positions opened by a buyout offered by the company in October, accepted by 190 employees, said Peter Cohenno, Southcoast Health spokesperson, in statement Friday.
“While the savings from the voluntary severance are significant, we anticipate needing to fill some of those vacated positions. We hope to fill these positions with people whose positions are being eliminated in today’s reductions,” Cohenno wrote.
“Southcoast Health closed this past fiscal year with a $38 million operating loss, which includes costs related to restructuring and higher-than-budgeted losses from the Southcoast Physicians Group. Our leadership made very difficult decisions related to actions that will reduce costs and achieve operational efficiencies. Today’s reduction in force will affect approximately 50 employees. These reductions are spread out across all areas of Southcoast Health,” wrote Cohenno.
Cohenno said the company “carefully and thoughtfully” reviewed the timing of the layoffs as well as the organization’s financial needs.
“We determined it was in the best interest of those impacted to make this decision prior to the holidays as opposed to immediately thereafter,” he said.
Reductions in force are the final option considered in challenging financial times, Cohenno said, pointing to the successful voluntary buyout accepted by more than 190 employees in October.
When announcing the buyouts, Southcoast reported a $29 million operating loss in the first three quarters of the fiscal year due to struggles with rising costs and falling reimbursement rates.
In an Aug. 31 letter to employees, Keith A. Hovan, President and CEO of Southcoast, said the company had addressed the losses through driving targeted growth, utilizing resources responsibly, maximizing patient access to Southcoast physicians and services, and evaluating services and programs. But personnel had to be added to the cost cutting measures, he wrote.
“Our industry continues to change dramatically and we are changing with it, always anticipating that change and staying several steps ahead. We aren’t yet where we want to be financially, but we are on the path to financial success,” he added.
Rob Borkowski is a PBN staff writer. Email him at Borkowksi@PBN.com.
