Sacred Heart layoffs fewer than expected

Layoffs at Sacred Heart Medical Center will be fewer than anticipated this spring as the hospital treats record numbers of patients and rebounds from last year’s dismal financial performance.

Regardless, the ultimate loss of 175 employees at Spokane’s leading private employer announced Tuesday will send shudders through the local economy. Hospital president Mike Wilson said 155 employees accepted early retirement or voluntary separation packages. Up to 20 more employees likely will be laid off as the hospital reassigns staff to fill vacancies and comply with union seniority rules.

The changes are less dramatic than originally feared as the hospital reeled from a $4 million loss last year. Executives blamed the red ink on the ballooning number of patients unable to pay their bills and the nagging problem of low reimbursements for Medicare patients.

The staff cutbacks are the second major reduction in eight months.

Last August, the hospital laid off 174 licensed practical nurses. That wasn’t enough to stem the problems, so executives hired outside firm Navigant Consulting to find savings.

At the beginning of the year, rumors circulated that further layoffs would be deep. Instead, respiratory illnesses in Spokane spiked; emergency room visits rose; and more babies were born in March at Sacred Heart than in any month since 1991. Together with a month-long hiring freeze that left many positions dark, hospital finances shot north.

“The net result is that we are doing much better. Patient satisfaction is high and we think that’s because of changes we’ve made,” Wilson said, adding that the hospital expects the improvements to be lasting.

The loss of some 350 jobs since last August – more than 10 percent of the hospital’s work force – has affected the remaining employees, too.

Bob Barker, a spokesman for the union representing many of the employees, said hundreds of employees have suffered job shake-ups.

“We just think that anytime you lose this many employees, quality suffers,” he said. “The sad fact is that the hospital has far fewer certified nursing assistants and it won’t be able to make up for the care these dedicated employees delivered.”

Earlier this week about 176 nursing assistants were asked to select new positions in the hospital. Some decided not to and chose to leave their jobs.

Barker said part-time workers and weekend shifts were especially hard-hit, leaving some employees with difficult choices.

“We had some single moms and others who just couldn’t work the shifts that were offered, so they were basically forced out,” Barker said. “It’s a tough situation.”

Of the 155 employees that chose to leave, about 84 took early retirement and 71 opted for the voluntary separation packages.

Barker acknowledged that the hospital buyouts were generous, including terms that allowed many employees to leave with about four months’ pay. However, as is common with most severance deals, employees who accept them are not placed on a recall list.

The hospital stands to save money by hiring new employees who won’t be paid as much as the senior staff who left. Also, the cuts in part-time staff will save Sacred Heart money spent on benefits, Barker added.

Now that the staffing changes have been made, Wilson said the hospital will lift its hiring freeze so that it can fill openings, including 50 for registered nurses.

Some of those will be filled by registered nurses now working as intravenous therapists.

Wilson said the hospital is eliminating its IV therapy department and will ask registered nurses to insert and administer the IV units as part of their job duties.

Other areas affected by hospital cutbacks include nine jobs held by imaging aide clerks, assistants in the Emergency Department and surgical attendants.

Wilson said other job reductions will happen this year through attrition or reassignment.

“Our goal was not to lay off people but to position the hospital to be successful,” Wilson said.