Bassett Lays Off 101 Employees as it Addresses $80M Shortfall

By DARLA M. YOUNGS
OTSEGO COUNTY

On Wednesday, October 16, Bassett Healthcare Network eliminated 101 filled positions across the eight-county network, but that may not be the end of the association for some of those employees, according to Bassett President and Chief Executive Officer Staci Thompson.

Thompson sat down on Friday afternoon, October 18, to discuss the layoffs and dispel rumors that more cuts are looming on the horizon.

“The rumors have ballooned to 400 layoffs coming in multiple waves,” Thompson said. “None of that is the truth. No additional widespread cuts are planned.”

Thompson said last week’s layoffs are administrative and that none of those let go were providing direct patient services.

“We eliminated about 100 postings across the entire network as part of efforts to control rising healthcare costs,” Thompson explained. “It is a proactive approach that we’ve undertaken in order to continue to maintain our independence as a community based healthcare system.”

Thompson said Bassett has been working with Huron, a healthcare consulting group, since April, part of an overall improvement plan to ensure that Bassett is healthy for the future.

According to Huron’s website: “In today’s competitive landscape, organizations are under immense pressure to rethink their business models, lower costs and reduce risk. At the same time, they are having to navigate emerging technologies and create personalized, consumer-centric experiences. To remain competitive in the future, organizations must innovate, ideate and engage their people and consumers in new ways to drive value.”

“As your strategic partner, our teams meet you wherever you are on your transformation journey to develop strategies and innovative solutions, align your workforce with your organizational objectives, leverage technologies and improve operational efficiencies, enabling you to build a strong foundation for sustainable growth,” the website explains.

Thompson, who assumed the head leadership role in January of this year, said there is a lot more work to be done to improve Bassett’s financial situation.

The network recorded a deficit of $80 million in 2022 and a similar loss in 2023. Huron’s team has been helping Bassett officials understand such things as leading practices—which are more efficient and effective for delivering a particular outcome, based upon the constraints of the organization they are being applied to—and national benchmarks.

Cost of labor is just one of nine areas being addressed by Bassett. Thompson said there are eight other working groups concurrently reviewing supply chain, pharmacy, medical group access, coding, facilities, patient throughput, strategic pricing and charge capture, and human resources.

“Workforce is about one-third of the total impact,” Thompson said.

“Through workforce efforts overall—including last week’s reductions, reducing agency staff spending, and more—Bassett Healthcare Network will close approximately one third of its $80 million gap between expenses and net patient revenue,” Gabrielle Argo, Bassett director of communications and public relations, explained on Tuesday, October 22.

None of the recent layoffs were job-performance related, Thompson clarified, and she reiterated that “no bedside caregivers were affected, nothing in patient care. Those that were let go were not providing direct patient services.”

Thompson explained that Bassett officials worked hard to minimize the number of employees being laid off, calling it a “gut-wrenching” decision. Staff numbers have been gradually declining through attrition, as employees have left and not been replaced. How long various employees were likely to remain with the network and those expected to retire soon also figured into the ultimate decision, according to Thompson.

“We wanted to make this process the least disruptive overall,” she explained. “We tried to handle it in the kindest way possible, realizing that these were difficult decisions and people’s lives would be impacted.”

“These meetings took place both in-person and virtually, depending on employees’ work schedules and locations. The majority of conversations took place in-person, but other meetings took place virtually, as with fully remote employees, for example,” Argo said.

All people whose positions were eliminated received severance packages.

The leadership team made sure what they were doing was really in the best interest of the future and the greater good for the organization, Thompson said.

Thompson said there are employees who, despite being let go, would like to remain with Bassett.

“These positions are not coming back, but we are still hiring in certain areas, and a number of people who were let go said they would still like to stay with the network. They have skill sets that can be used in other areas,” she said.

“I was amazed by the graciousness of people at such a difficult time,” Thompson continued “We are working to expedite the interview process for those who would like to continue working within the network in other capacities.”

Argo confirmed on Tuesday that many of those who were let go last week are choosing to work with Bassett’s Human Resources team to apply and get fast-tracked into other open, needed positions around the network.

“So far, about 10 percent of these affected employees have already been re-hired in the system elsewhere in needed vacancies,” Argo said. “Some have already started their new positions. All people whose positions were eliminated are eligible and welcome to pursue other positions across the Bassett Healthcare Network.”

Moving forward, Thompson said Bassett is taking a multifaceted approach as it continues to look to improving its bottom line.

“Workforce initiatives are only one of nine focused disciplines—each of these workgroups is working to implement sustainable solutions for reducing expenses and/or increasing revenue. The efforts underway in these other disciplines, while impactful, are largely in the background and invisible to patients,” Argo explained.

“Some examples of solutions in these groups include pricing and sourcing supplies strategically to reduce expenses (supply chain); harmonizing patient flow across our hospitals to keep beds open and ensure we are accommodating patients within our network so they can get the care they need closer to home (patient throughput); optimizing clinic schedules to improve appointment access for patients (medical group); leveraging pharmaceutical business solutions to reduce operating and drug costs while elevating the quality of care for patients (pharmacy); optimizing and improving medical record practices for diagnosis and treatment codes (coding); standardizing fees for services (strategic pricing and charge capture); planning opportunities to invest in our buildings and infrastructure (facilities); and streamlining our hiring practices by reducing agency labor, among other best practices (human resources),” Argo outlined.

According to Argo, each of these work streams is very complex.

“The groups are working in synchronized approaches to reduce expenses and boost revenue. Most importantly, these concerted efforts are focused on providing best-in-class care while creating a more financially stable organization,” Argo continued. “The practices and solutions coming out of these work streams will be in place going forward for the long-term benefit of our patients and communities.”

“We are leaving no stone unturned,” Thompson emphasized.