Crozer Well being is shedding 215 staff, or 4% of its workforce, as a part of an organizational restructuring.
Upland, Pennsylvania-based Crozer, which operates 4 hospitals, mentioned Wednesday the modifications stem from monetary struggles, together with the results of the pandemic and rising prices for staffing, provides and prescription drugs. The for-profit system, which is owned by Prospect Medical Holdings, additionally famous the detrimental results of failed payer contract renegotiations and litigation associated to Delaware County Memorial Hospital’s proposed transition to a behavioral well being facility.
The layoffs come seven months after Wilmington, Delaware-based ChristianaCare Well being System backed out of its deliberate acquisition of Crozer, citing the present financial panorama. The deal would have transitioned Crozer to nonprofit standing.
The restructuring will get rid of overlaps in administration and lower underused companies, the system mentioned. Affected areas embrace the sleep heart at Taylor Hospital, cardiac rehabilitation on the Springfield Hospital campus, wound care at Springfield and outpatient drug/alcohol therapy at Crozer-Chester Medical Heart, a spokesperson mentioned.
Crozer gave affected staff 60 days’ discover of the deliberate layoffs this week. Workers will be thought-about for open positions or obtain transition help whereas discovering different jobs, the system mentioned.
The reorganization would “be certain that sources are correctly allotted to satisfy our sufferers’ and our communities’ most urgent well being care wants” whereas the system addresses its monetary losses, Crozer CEO Anthony Esposito mentioned in a information launch Wednesday.
The system mentioned it’s shedding about $7 million a month, down from the $12 million estimated six months in the past when it introduced a deliberate repurposing of Delaware County Memorial to assist lower prices. The plan drew opposition from group members, together with a lawsuit from the nonprofit Basis for Delaware County filed final 12 months, arguing that father or mother firm Prospect agreed in 2016 to offer acute care companies for not less than a decade on the Crozer system’s 4 hospitals.
In October, a Pennsylvania decide briefly blocked Crozer’s plan to shut Delaware County Memorial. Nevertheless, a month later, the Pennsylvania Division of Well being halted affected person admissions and emergency care on the hospital on account of understaffing.
