Am I Next? Halzelden Betty Ford Foundation Layoffs


It is amazing that in the midst of a government-declared opioid crisis and rampant substance abuse that one of the nation’s premier addition treatment providers reduced their headcount by 57employees. Citing a reduction in self-paid admissions and reduced reimbursement rates from insurers, management also cited cash-flow issues arising from the implementation of their new electronic health record system. It appears that it may not be the patient record portion of the system that is causing problems, but the modules associated with payment submission and processing. The foundation’s size is relatively small, compared with general medical service providers. According to management, there was a loss of $10.1 million in the first three quarters; as measured against $135 million in revenue. This certainly looks like an attractive acquisition target for any well-run health provider that can benefit from their storied name.



Am I Next? Layoffs, Tenet Healthcare

(January 9, 2018) It appears that Tenet is planning to lay off 2,000 workers, up from the 1,300 positions it said it originally planned to cut. The goal is to reduce annual costs by $250 million, $100 million more than originally publicized. 

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Tenet has filed an SEC 8K (Report of unscheduled material events or corporate change) in which “the Company anticipates eliminating approximately 1,300 positions, including contractors” as part of a $150 million cost reduction initiative. The cost reductions will be “comprised primarily of headcount reductions and the renegotiation of contracts with suppliers and vendors.” Approximately 75 percent of the savings are expected to be achieved through actions within the Company’s Hospital Operations and other segments, including the elimination of a regional management layer and streamlining corporate overhead and centralized support functions. Tenet also expects to realize savings from actions within the Company’s Ambulatory Care and Conifer business segments.

The company has posted a $366 million net loss from continuing operations (for the Third Quarter of 2017) The reasons for the shortfall include “lower revenues and higher expenses related to Hurricanes Harvey and Irma and $10 million of lower-than-anticipated revenues from the Texas Medicaid Waiver and Florida Medicaid programs.”

Management changes continue and a new well-credentialed, well-experienced, high-powered Board member, James Bierman, joins the team.