- Baptist Health, the largest healthcare provider in South Florida, plans to reduce its executive staff through a voluntary separation program for employees at the director level or above.
- The decision is driven by the need to cut overhead costs due to rising expenses, decreased reimbursement, staffing shortages, and other industry factors exacerbated by the COVID-19 pandemic.
- The final decisions on voluntary separations will be made during the summer, and the company aims to reorganize and reduce expenses while implementing a restructured management format for its regional network.
Baptist Health, the largest healthcare provider in South Florida, is slated to trim its executive staff by way of a ‘Voluntary Separation Opportunity’ for employees at the director level or above, as confirmed by the hospital.
According to an internal email obtained by The Capitolist and given to high-ranking Baptist Health staff members, CEO Bo Boulenger offered a one-time option to file for a voluntary departure that would take effect later this year. Citing rising costs since the onset of the COVID-19 pandemic, Boulenger wrote that the company is aiming to cut overhead costs.
“Like many healthcare organizations across the nation, we continue to navigate many post-pandemic challenges,” reads the email. “With financial headwinds stemming from rising costs, decreased reimbursement, staffing shortages, and other industry factors, we must continue to focus on being a more efficient organization.”
A Baptist Health media representative provided that final decisions will be made over the summer for those who apply for voluntary separation, though top-level executives do not hold a target number of positions to eliminate. Further, positional end dates will vary by organizational needs. Per the representative, the decision to present the separation offers was considered by the CEO and Baptist Health’s executive leadership team.
“This voluntary opportunity is a positively-focused method of reducing workforce expenses while also enabling us to reorganize and reduce duplication. Leaders will be working closely with senior management on these decisions over the summer,” continued Bolenger in his email to staff.
Baptist Health personnel were unable to provide a general estimate of the overall overhead cost sought to be reduced from recurrent expenditures at this time. The health provider employs approximately 27,000 individuals in South Florida and reports annual revenues in excess of $5 billion.
In his email, Boulenger also alluded to a restructured management structure for Baptist Health’s regional network. Though details were sparse, the CEO stated that additional details were to come later this year.
“By leveraging data-driven, evidence-based practices, and exceptional talent across our healthcare organization, we will be better able to align our work and ensure a consistent, high-quality experience for our employees and our patients,” he wrote. “You will hear more about this model and how it may impact specific departments or services over the coming months.”