Update from Jennifer Burrows, RN

Jennifer Burrows, RN
Chief Executive
Providence Oregon

Dear Providence Oregon Caregivers,

I encourage you to read the message below from our system chief operating officer, Darryl Elmouchi, M.D., on Providence’s financial sustainability.

I also want you to know what it means to us in Oregon.

This week, 134 caregivers in Oregon, some of whom are union members, were affected by organizational changes. As Darryl mentioned, we are supporting those caregivers whose positions were eliminated, and helping them move into essential open positions wherever we can.

• Also, as you are aware, at the beginning of the year we implemented a robust process to evaluate each open position and constrict our workforce through vacant positions. We have identified dozens of positions that will not be re-filled.
• And, we have taken immediate action to cut spending, including greater stewardship over discretionary expenses. We are eliminating or greatly reducing items such as travel, community sponsorships and celebrations. 

I want to stress that this work will continue through the year and there will be more difficult news to come. We are doing all we can to make decisions that put us on stable financial ground while minimizing the impact on caregivers and our patients.

These are immensely difficult decisions that reflect the changing health care landscape. All health systems across Oregon are undergoing a fundamental restructuring due to widespread workforce and funding issues. We have some of the highest staffing levels and labor costs in the nation, and federal changes to Medicaid and health care funding will affect Oregon more than any other state in the country.

I know there is much uncertainty now and that causes anxiety. I want to assure you that the Oregon executive team is committed to being thoughtful in our approach to change. Decisions are being made after discussions with stakeholders to fully understand how changes will affect our community and caregivers. We’ll be transparent with you about how we make those decisions and why.

The Sisters of Providence have given us a legacy of caring for the community with a scarcity of resources and they have charged us with following their tradition of changing with the times. Our current time calls us to be innovative and reimagine how we will care for our communities in the years ahead.  

This work is hard, but I’m confident we are making these changes for the right reasons and with a team of Mission-inspired leaders. We will come out of this stronger while remaining faithful to our Mission and values.

Jennifer

As stewards of a nearly 170-year-old legacy, we are called to use our resources wisely to ensure continued access to high-quality, compassionate care, especially in an era of reduced reimbursement and higher costs.

In recent communications, we have described the multiple challenges facing health care, including proposed federal cuts to Medicare and Medicaid, ongoing denials and delayed payments from commercial insurers, higher labor costs due to new staffing laws in some of our states, and higher costs for pharmaceuticals and supplies due to inflation and tariffs.

Toward that end, we have been taking a comprehensive approach to long-term sustainability, evaluating opportunities to reduce unnecessary expenses, optimize revenue, and minimize variation and duplication.

The goal of this work is to put five years of operating losses firmly behind us, so that we are well positioned to reinvest in — and revitalize — the front lines of care, including the people, programs, equipment and facilities needed to serve our communities and carry out our Mission.

Today, I want to share an important update on this work.

This week, the family of organizations implemented restructuring efforts that will reduce approximately 600 full-time equivalent positions across seven states. The affected positions are primarily in non-clinical, administrative functions. However, some patient-care roles are also impacted. These decisions were made by local and shared services leadership based on the needs of their ministries and communities.

While this represents a small portion of our total 125,000-person workforce, we are acutely aware that behind every role is a person, colleague, friend and caregiver who has contributed meaningfully to our Mission. We understand the personal impact of these decisions and do not take this lightly. With more than 5,000 open positions in our system, we are working to redeploy individuals into open roles wherever possible. We are also providing transitional resources to those affected.

Restructures like these are difficult but necessary steps given the rapidly changing environment. The Providence St. Joseph Health Board and Sponsors Council support these efforts, guided by the courage and conviction of our founding sisters, who made similarly hard decisions to sustain and grow the healing ministry.

As we move through the rest of the year, we will continue to evaluate our operations through the lens of our Mission, values and community needs, taking strategic steps to strengthen our ministry and help us continue serving those who are most vulnerable.

Many of our peers across the country have already announced similar changes. Still, we know this news is deeply felt. Please remember that support is available — our Caregiver Assistance Program offers mental well-being resources to help you navigate this time.

Thank you for supporting one another — especially those who are affected — with compassion and kindness during this period of change. Your unwavering commitment to serving those in need is what brings our Mission to life, and I am sincerely grateful for each of you.

Darryl Elmouchi, M.D.
Chief Operating Officer
Providence