Skiff board outlines reduction in force

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Skiff Medical Center’s long-awaited announcement concerning its reduction in force directive was announced during Wednesday’s Board of Trustees monthly meeting.

Interim Human Resources Director Debbie Hamack told the board that a total of 23 jobs will be eliminated due to attrition, and another 23 currently-occupied positions will be eliminated. Another 51 employees will have their hours reduced.

Hamack said reduction in force methodologies include attrition, reduction in number of hours worked for some and elimination of some positions. Determining factors include those most recently hired, regulation standards (some positions must be maintained by law), and combining or eliminating job functions.

Most Board of Trustees members expressed regret over the decision, but felt it was something that had to be done.

However, board member Jeff King was the sole member to vote against the reduction in force.

“I think there were other ways to approach this without the incredible expense we’ve had to bear,” King said. “I wasn’t in favor of this to begin with, so I can’t support what’s being done.”

Dr. Leighton Frost, a member of the steering committee that studied the reduction in force issue from the beginning, said the decisions were not made lightly.

“I realize these are people’s jobs, their careers. But if we lose the trust of the patients, then there is no future for this hospital,” Frost said.

Interim chief financial officer David Boyer said Skiff’s operating margin has continued to drop over the past few years. Admissions have been down from 2,500 in 2005, to an estimated 2,100 in this fiscal year. Surgeries also have decreased from 3,400 in 2005 to an estimated 2,800 in this fiscal year.

The hospital suffered a $174,000 loss in September, and admissions were down 2 percent for the current quarter compared to last year. Essentially, expenses stayed flat for September, while revenues dropped, resulting in a operating margin loss of $174,000, and a year-to-date loss of $1.19 million.

Hamack indicated that those being impacted by the RIF would receive a severance package of one week’s pay per year of employment, with a maximum of five weeks.

Hamack said changes in employees’ hours and notification of employees losing their jobs will begin on Friday, and continue into next week. She said she did not want this to drag out a long time, and she said no one will be “walked out the door.” Counseling for those who remain also will be available.

Salaries and benefits account for nearly 70 percent of Skiff’s total budget, and the savings realized by the reduction in force is expected to be about $1.76 million over the next 12 months. Board member Dan Skokan questioned if the savings would be enough to ensure the hospital’s future financial health.

Interim CEO Francie Jahn said the next step is to determine the best way to manage each of the hospital’s departments, looking at workflow processes, ways to work smarter.

A press release following the Wednesday meeting said this was the first reduction in force at Skiff Medical Center. However, the steering committee took care to ensure that services to patients was not compromised.

“All current services to the community are being maintained, including the outlying clinics,” the release said. “While this was a difficult decision for the Board, our mission is to provide quality, compassionate care to the community. We owe it to the community to run the hospital effectively and prudently to remain strong and independent in order to meet the healthcare needs of those we serve now and into the future.”

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