AM I NEXT? NO LOVE AT SUTTER HEALTH (07/18/22)

Am I Next? Sutter Health restructuring and cost reductions.

JULY 18, 2022 — 1,150 SUTTER EMPLOYEES TO BE RE-BADGED AS R1 EMPLOYEES

Salt Lake City, Utah-based R1. a revenue cycle management company, has announced a “partnership” with Sutter Health in a cost-savings initiative projected to save $400 million over a ten-year period.

As part of the agreement, about 1,150 Sutter revenue cycle employees in non-clinical roles will be offered positions with comparable pay and benefits with R1.

According to a company spokesperson, “The R1 partnership helps strengthen Sutter’s long-term financial health and our ability to continually reinvest in our patients, communities, and integrated network. We have been part of the fabric of Northern California for a century and remain committed to delivering on our mission to provide high-quality care to our patients and communities for years to come.”

JUNE 5, 2021 — ANOTHER 400 LAYOFFS ACROSS THE NETWORK

The company has announced that it plans to lay off another 400 employees across its network, mostly in administrative positions in areas including benefits, human resources, data services, and accounting.

According to a company spokesperson, “Moving forward, we will continue to work to minimize staff reductions and their impact on our dedicated employees as we look for ways to eliminate variation, streamline resources and more efficiently manage our indirect costs.”

FEBRUARY 12, 2021 — 277 LAYOFFS, MOSTLY IT WORKERS IN MATHER, CALIFORNIA

The company has announced 277 layoffs, including 92 analysts, 43 engineers, and 28 project managers, commencing April 2, 2021. The majority of the layoffs are located at Sutter Health’s IT hub in Mather, California.

According to a company spokesperson, “In response to the pandemic, we have dramatically adjusted our operations and made the right investments to protect our patients, staff, and clinicians. However, these additional expenses, combined with the ongoing unpredictability in our patient volumes, have further and significantly impacted our financial situation and already declining operating margins. ”All these efforts are aimed at prioritizing direct patient care while mitigating the financial impacts of the pandemic, so we can continue to serve our communities for years to come.

FEBRUARY 5, 2021 — Original post…

Sacramento, California-based Sutter Health, an integrated health delivery system that operates 24 acute care hospitals and over 200 clinics in Northern California, has announced additional restructuring and cost-cutting efforts in 2021. The initial plan is to layoff 200 non-clinical employees with more layoffs possible in the future.

According to a spokesperson, “Our work will continue into 2021 as we look at ways to eliminate variation, align resources, and become much more efficient with our indirect costs so we can best serve our patients and communities. This includes department restructures, as well as closing some programs or reducing certain services, particularly where patient demand has been declining.”

Like most medical companies, Sutter has been severely affected by the global pandemic, reduced patient volumes, and reduced insurance reimbursements.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?