Ailing Hawaii Health Systems Corp. will cut dozens of jobs
By Kristen Consillio, The Honolulu Star-Advertiser | |
McClatchy-Tribune Information Services |
The state's quasi-public hospital system, facing a
"We value our employees tremendously and we really tried to avoid this,"
HHSC has 4,500 full- and part-time employees and said further reductions may occur later in the year. There are no staff reductions on
The company said it will notify employees by Tuesday whether their positions will be cut. The notification begins a 90-day process in which affected employees may choose to be placed in vacant positions. If none exists, workers can exercise the "bumping" process as part of collective bargaining agreements.
The process, which allows workers with more seniority to take a less senior employee's position, could take up to nine months.
HHSC facilities are bracing for decreased state subsidies and health insurance reimbursements as operating costs and the need for health care in rural areas continue to rise.
The state Legislature cut the hospitals'
So far the company has identified ways to reduce the deficit to
HHSC said it hasn't been filling open positions that were budgeted and has laid off some non-civil-service employees, as well as temporary workers, and is delaying payments to vendors.
The layoffs and unfilled positions totaled close to 100 people in the past several months, Hall said, adding that the entire range of employees is affected, including office personnel, clinical workers (nurses, dietitians, nurses aides, therapists, physicians) and maintenance people.
Several assistant administrators and other positions also were impacted, such as compliance officer and information systems personnel. Savings for those already laid off or positions that were budgeted but not filled totaled between
The workforce reductions occurring next week will result in about
<p>"We do not have definite plans for future cuts, but due to the fact we are still facing a deficit of around
HHSC relies on state money for 15 percent to 20 percent of its annual
HHSC acts as a "safety net" for the state's neediest population -- many of the poor and chronically ill. Its aging facilities are in a unique situation with nearly all HHSC patients on
Part of HHSC's financial problems stem from its facilities in rural communities that are unable to generate sufficient revenue to support operations.
HHSC had hoped to partner with a private entity to rescue the hospitals. Earlier this year lawmakers explored legislation that would have paved the way for either a public-private partnership or the sale of some facilities to the private sector, but the bill stalled in the closing days of the session.
In addition to the shortfall in the state appropriation,
The dire situation has already forced HHSC -- the largest provider of health care in the islands -- to begin cutting services and staff on the neighbor islands.
It recently announced plans to close its
The state hospitals are called "safety net" facilities because they are often the only alternative for health care in their geographic area and serve everyone in need of medical attention regardless of a patient's ability to pay.
___
(c)2014 The Honolulu Star-Advertiser
Visit The Honolulu Star-Advertiser at www.staradvertiser.com
Distributed by MCT Information Services
Wordcount: | 876 |
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News