Hospitals to cut 19 leadership positions

Providence Sacred Heart Medical Center and Holy Family Hospital are eliminating 19 management positions this month as broad economic problems reach area hospitals.

Dr. Andrew Agwunobi, chief executive officer at Providence’s operations in Eastern Washington, said last month that layoffs were likely. The region’s largest private employer is bracing for deep cuts in state funding – a source of revenue that pays a big part of the overall bill for patients needing hospital care.

Staffing accounts for 52 percent of the hospital’s overall budget, and Agwunobi said the 19 leadership jobs are the first of “what could be ongoing reductions necessary to weather the tumultuous economic environment.”

Executives are consulting with outside firm Wellspring Partners to review hospital operations and costs. As the results come in, the hospital has been making changes to curb costs such as leaving positions dark, freezing top management salaries and reducing discretionary spending.

Severance pay and career transition aid are being made available. A recall program has been installed to give hire-back priority to those laid off.