The number of active positions PeaceHealth will eliminate total approximately 177, including 124 at PeaceHealth Southwest Medical Center.
Yordy said the Columbia Network is “facing special challenges, in part with the decision by Kaiser to ‘internalize’ care by moving much of the care of Southwest Washington patients to Oregon.”
Other cost-cutting measures have already been implemented, Yordy noted, including some staff-suggested efficiencies.
“We already have slowed the hiring for all but the most critical positions,” he wrote. “We’ve combined some positions to be more efficient. We have deferred compensation increases for the PeaceHealth Executive Team. We have reduced overtime, premium time and contract labor.”
The cuts are expected to help the Vancouver-headquartered health system to deal with a $130 million budget gap. Yordy said the root causes of that shortfall are:
- Reductions in reimbursement associated with sequestration (automatic federal budget cuts) and federal and state health reform;
- Flat or reduced patient volumes, particularly in the Columbia Network where a change in Kaiser’s contract has contributed to sharply lower volumes; and
- Required investments in PeaceHealth’s electronic health record.
“I am deeply saddened,” Yordy added. “I recognize that this will be very painful and difficult for all of us, especially those dedicated caregivers and their families whose positions will be eliminated… We will do all we can to help make the transition to new employment as smooth as possible, growing out of our commitment to dignity, respect and compassion.”
