On Friday June 2nd, New York City’s municipal hospital system laid off 396 managers in an attempt to heal a $1.1 Billion deficit. This job reduction eliminates 476 management positions, through 396 terminations in addition to 80 more vacant positions which will not be filled. The imminent layoffs affect mostly mid-level managers, as they are not protected through unions.
As reported by the NY Post, NYC Health+Hospitals run 11 acute-care hospitals and other medical facilities in 70 locations throughout the city, employing a total of nearly 40,000 people. Municipal hospitals serve almost 1.2 million patients annually, nearly 425,000 of whom are uninsured. The health care organization reported an operating loss of $776 million in the first half of fiscal 2017, as per their financial statements. Mayor Bill de Blasio already increased funding for the system by 10.9%, to $766.8 million for fiscal 2018, which begins on July 1.
“We’ve implemented a difficult but necessary action to help build a stronger, more agile, and more stable public health care delivery system,” said Stanley Brezenoff, CEO of Health+Hospitals, in the Bloody Friday announcement. He noted “high costs and inefficiencies” as culprits, together with modifications in reimbursement rates from the state and federal government.
Brezenoff said there is unnecessary bureaucracy which can be reduced, to emulate other health care systems. “By restructuring and reducing unnecessary layers of management, we can better direct resources where we need them most — at the front line of patient care,” he said.
“There will be no impact on services or patient care, quality, or safety. Finding efficiencies is a smart, responsible business practice, and the only way we can sustain our health system that serves the most vulnerable New Yorkers,” continued Brezenoff.
“It’s a shame. You don’t want to see people out of work in this economy,” Brooklyn State Sen. Diane Savino said of the layoffs at Coney Island hospital.a
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