Legacy Health System is reducing its work force by 64 positions, due to the down economy.
Legacy Health System is reducing its work force by 64 positions, due to the down economy.
The cut-back includes 22 layoffs and 42 positions that will remain unfilled.
Legacy’s financial picture speaks for itself. During the first six months of its fiscal year which ended September 30, discharges at all five hospitals declined 8.5% compared with the previous year. Total net revenues were down 2.2%, and operating income was $22.2 million with a 3.4% margin compared to $29.4 million with a 4.6% margin in 2009. Overall Legacy’s hospitals budgeted for a 5.1% operating margin, according to an email sent to employees on October 28 by Pam Vukovich, senior vice president and chief financial officer.
“It’s essential that we achieve at least a 4% operating margin in order to earn the capital that will fund the strategies of the future,” Dr. George Brown, CEO and president, told employees in a January 26 memo. “This is a tough goal during current economic times, yet I know we can (and must) achieve this level of financial performance.”
Read more at The Lund Report.
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