CMC announces layoffs, cites ‘unprecedented financial challenges’

Sign Up For Our FREE Daily eNews!

Screen Shot 2016 07 06 at 6.32.17 PM
Catholic Medical Center announced a reduction of 142 full-time employees including 54 current staff and the elimination of open positions.

MANCHESTER, NH – Catholic Medical Center on Thursday announced a layoff of 142 total positions, including 54 currently filled positions as well as elimination of open positions, reduction of hours and “planned departures.”

Alex Walker, CEO and President of CMC, sent out a letter to all staff late on Thursday announcing the “difficult decision” to reduce staff. In the letter, Walker led with the years of “change and challenges” the healthcare field has weathered.

“At the same time, we continue to face unprecedented financial challenges that, if left unaddressed, will inhibit our ability to deliver on our mission of providing health, healing and hope to all who seek our care.  Increasing costs, lower reimbursements, changing demographics and changes in our payor mix have all contributed to the financial stress of the organization. We are not alone but we must do what is best for the long-term future of CMC,” wrote Walker.

Walker said there would be an immediate reduction in “overall staffing levels” to include 142 full-time jobs – 54 of which were currently employed combined with the elimination of open positions, reduced hours, resource redeployment in satellite locations and planned departures.

“These reductions, paired with other cost-saving strategies and a concentrated effort on increasing volumes and revenue growth, will better position CMC for the future,” wrote Walker.

A series of meetings was scheduled for employees affected by the layoffs to meet with management to answer questions.

You can read the letter to employees below:


Colleagues,

Here at CMC and throughout the healthcare industry, the last several years have been full of change and challenges. Despite all these challenges, your dedication and commitment to CMC and our patients has continued to set us apart. Receiving CMS’s 5-star quality rating, being named one of the nation’s Best Hospitals by US News & World Report and one of Healthgrades’ Top 50 Cardiac Surgery Programs are all testaments to the extraordinary level of care you provide. At the same time, we continue to face unprecedented financial challenges that, if left unaddressed, will inhibit our ability to deliver on our mission of providing health, healing and hope to all who seek our care.  Increasing costs, lower reimbursements, changing demographics and changes in our payor mix have all contributed to the financial stress of the organization. We are not alone but we must do what is best for the long term future of CMC.

To address these challenges and ensure we are right-sized and well positioned for the future, we have made the difficult decision to reduce CMC’s overall staffing levels. This reduction involves a total of 142 FTEs, which will be achieved through a combination of 54 staff reductions, elimination of open positions, reduced hours, resource redeployment in our satellite locations and planned departures.

These reductions, paired with other cost-saving strategies and a concentrated effort on increasing volumes and revenue growth, will better position CMC for the future.  We must continue to operate in a manner that is fiscally responsible, ensuring we are charting a course that will enable our organization to continue to provide the highest quality healthcare to our patients, who have come to expect nothing less.

I realize this decision impacts a number of highly valued colleagues and team members.  I am grateful for the commitment and dedication they have shown to CMC and our patients. It was not without great thought and careful consideration that these decisions were made, but in light of the economic challenges we face, it was, unfortunately, necessary.

I understand that today is a difficult day for CMC. Please know that I am forever grateful for your commitment and dedication to CMC and to each other. My commitment to our mission and our ability to achieve it, has never been stronger and I look forward to working with all of you to help chart our path forward.

Subscribe Now and Never Miss Another Thing!

About this Author

Carol Robidoux

PublisherManchester Ink Link

Longtime NH journalist and publisher of ManchesterInkLink.com. Loves R&B, German beer, and the Queen City!