Adventist Health reorganization includes administrative layoffs
The health system is consolidating from seven to five networks and has an affiliation agreement with Mid-Columbia Medical Center.
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Adventist Health is reorganizing, with a plan to reduce administration costs by more than $100 million.
Adventist Health has made the difficult decision to eliminate system administrative positions in the workforce, it said by statement. The number or percent of staff being laid off has not been announced, but 59 employees have been cut at the Roseville, California, headquarters, according to the Sacramento Business Journal.
Adventist Health filed a California Worker Adjustment and Retraining Notification Act notice, which is required during a significant reduction in force, it said. It has provided affected employees with 60 days written notice.
"Reducing the number of care networks strengthens our operational structure and broadens the meaning and purpose of our network model as well as the geographical span of ONE Adventist Health," said Adventist Health CFO Todd Hofheins. "This also reduces overhead and administrative costs."
WHY THIS MATTERS
Under a strategic reorganization, Adventist Health is consolidating seven networks of care into five systemwide: Northern California Network, Central California Network, Southern California Network, Oregon State Network and Hawaii State Network.
In addition, Adventist Health and Mid-Columbia Medical Center (MCMC) have recently approved an affiliation agreement for MCMC to join Adventist Health. Pending final regulatory and state approvals, MCMC will become part of Adventist Health's Oregon State Network to serve residents of The Dalles and Columbia River Gorge.
"Our commitment to rural and urban healthcare remains steadfast, and we are expanding to other locations to invest and transform the integrated delivery of care," said Kerry L. Heinrich, president and CEO, Adventist Health.
THE LARGER TREND
Adventist Health is a faith-based, nonprofit integrated health system serving more than 80 communities on the West Coast and Hawaii. It has 37,000 employees, physicians, allied health professionals and volunteers.
Earlier this year, Adventist Health announced a restructuring of its senior leadership. Todd Hofheins, who was named CFO in 2020, now serves as chief operating officer.
John Beaman, who had been the chief business and people officer at Adventist Health since 2018, is serving as the new chief financial officer.
Bill Wing, president and chief strategy officer, stepped down, Adventist said.
Twitter: @SusanJMorse
Email the writer: SMorse@himss.org
