SwedishAmerican announces 49 layoffs, outsourcing

Staff Report

SwedishAmerican Health System is reducing its workforce by 49 employees and eliminating an additional 76 vacant positions. These actions are part of a total budget reduction of approximately $9.5 million.

“Rising charity care and bad debt levels, Medicaid and Medicare reimbursement cuts and the delay in payments from the State of Illinois, which now are more than 200 days late, have produced shortfalls in our budget that can no longer be sustained,” said SwedishAmerican Health System President and CEO Dr. Bill Gorski. “This is painful and affects people, but the current climate requires us to take action in order to maintain our financial stability.”

According to Dr. Gorski, compared to the nation, state and region, SwedishAmerican remains strong. Market share continues to grow, and SwedishAmerican continues to be profitable. However, according to Dr. Gorski, the cuts are a necessary and proactive response to a challenging economic climate.

SwedishAmerican will outsource its durable medical equipment business, gift shops and valet parking program. Some affected employees will be able to secure positions with the outsourcing companies or the health system.

Medical supply, information technology and other contracts have been renegotiated, and discretionary cost reductions will be made across the health system. Merit increases to staff will be delayed until Jan. 1, 2013, and to management until April 1, 2013.

Dr. Gorski said that, throughout this process, the focus has remained on the provision of high-quality, patient-centered health care; community needs; and growth, investment, and commitment to key services and projects such as the Heart Hospital, expansion of the Medical Group and construction of the free-standing SwedishAmerican Regional Cancer Center.

SwedishAmerican is a not-for-profit, locally-governed health care system with headquarters in Rockford. The health system is composed of two hospitals, 30 clinics, a home health care agency, a foundation and an exclusive affiliation with UW Health in northern Illinois.

From the May 9-15, 2012, issue