Catholic Health to cut 200 positions

Posted on: Thursday, November 21, 2019 By: KorchekStaff

Buffalo, N.Y.-based Catholic Health is cutting about 200 positions through a combination of voluntary buyouts, layoffs, elimination of vacant positions and management consolidations, the health system confirmed.

"We are taking a methodical and measured approach to deal with the constant state of change health providers across the country are experiencing, while ensuring we continue to develop and deliver the type of care our patients have come to expect," Mark Sullivan, president and CEO of Catholic Health, said in a news release Nov. 21. "This means reinventing how we deliver the highest quality care to our community now and in the future."

The health system said more than half of the cuts will come from a voluntary separation program the health system initiated in October. The rest of the cuts will come from layoffs, not filling vacancies and consolidations. Both management and non-management employees will be affected. 

The cuts will take effect over the next couple of months, and  employees will receive severance packages and outplacement assistance as needed, Catholic Health said. Some employees will  be able to apply for other open positions in Catholic Health. 

"Decisions like this are never easy, and we will support our associates affected by these changes," Mr. Sullivan said. "The proactive steps we are taking today, along with ongoing efforts to transform care, expand needed services and address inadequate reimbursement with area payers that has not kept pace with the changes in healthcare delivery, will make us stronger long-term." 

News of the cuts comes about two months after Catholic Health implemented a hiring freeze after posting an operating deficit of $16 million. The health system said direct caregiver positions and certain essential positions were excluded from that  hiring freeze.   

Catholic Health is a nonprofit health system with more than 10,000 employees at its hospitals, primary care centers, imaging centers and  community ministries.