Organizational Changes: Message from Darryl Elmouchi, M.D.
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