promedica was a great company but a series of bad moves turned things around towards bad
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ProMedica lays off unspecified number of non-clinical employees
ProMedica lays off unspecified number of non-clinical employees
Luke Ramseth
The Blade
lramseth@theblade.com
Jul 5, 2022
10:09 PM
ProMedica laid off an unspecified number of non-clinical employees in recent days amid ongoing financial woes.
The Toledo-based health care system confirmed the layoffs Tuesday but provided few specifics, including exactly how many had been let go. At least some employees were notified late last week.
ProMedica spokesman Tausha Moore said in a statement that the organization had "made the difficult decision to eliminate some non-clinical positions," that the layoffs accounted for less than 1 percent of ProMedica's workforce, and that affected positions were "primarily related to pilots and processes outside of our core business as well as certain corporate services."
Nationwide ProMedica employs approximately 44,000, according to its most recent financial filing, so less than 1 percent would mean roughly 440 or fewer employees lost their jobs.
Luke Ramseth
Crisis consultant hired as temporary CFO amid ProMedica shakeup
It has been a tumultuous year for the nonprofit health system.
In May ProMedica reported a $126 million first-quarter operating loss, which followed hefty losses in 2021. Later that month came a leadership shakeup with ProMedica ousting its chief financial officer and several other senior leaders. It hired an interim CFO from Texas who has experience with health care restructuring and crisis management.
ProMedica's insurance arm, Paramount, also lost out on a lucrative Medicaid contract renewal with the state of Ohio, which the system's leaders warned earlier this year would lead to downsizing on the Paramount side by about 200 employees.
Ms. Moore said the latest round of layoffs were separate from the Paramount downsizing.
"ProMedica regularly evaluates ways to operate more effectively and efficiently while continuing to deliver high-quality, compassionate care," Ms. Moore said in the statement. "As we move forward, we remain focused on taking action to build stability and sustainability throughout the organization."
She added: "We empathize with the affected employees and are committed to assisting them through their transition. ProMedica’s human resources department is working closely with affected employees to provide support during this process."
ProMedica's chief human resources officer since 2019, Les Thompson, was among the recent departures from the organization. He was hired in June by Love's Travel Stops for the same top HR role after a national search by that company, Love's said in a June 16 announcement. Ms. Moore declined to comment on Mr. Thompson's departure.
Luke Ramseth
ProMedica reports $126M loss amid soaring labor costs
Ms. Moore noted that "many hospitals and health systems are facing significant financial challenges stemming from the pandemic fallout and rising expenses," not only ProMedica. The health system has been especially dragged down by soaring labor costs, including due to higher use of staffing agencies, as well as lower occupancy through the pandemic within its Senior Care division.
First Published July 5, 2022, 10:04pm
Luke Ramseth
https://www.toledoblade.com/business/labor/2022/07/05/promedica-lays-off-unspecified-number-of-non-clinical-employees/stories/20220705143