Providence CEO: No plans for layoffs in Oregon

The Oregonian article, by Jeff Manning, stated that Providence Health and Services “is preparing an aggressive cost-cutting campaign that will include layoffs” throughout its facilities in seven western states.

Manning reported that Providence had an operating loss of more than $255 million in 2016 and “is looking to cut costs across its seven state-network.”

Underriner said in an email, “For those who are Oregon Region caregivers, there are no planned layoffs. That doesn’t mean we will not continue our regular stewardship of business, making decisions that can change employment for some caregivers, but we are not having layoffs. Financially in Oregon, we are doing okay and meeting our budget.”

In addition to the hub, Providence Hood River Memorial Hospital, Providence in the Gorge operates a variety of clinics staffed by general practitioners and specialists, the Ray Yasui Dialysis Center, hospice and counseling services, as well as in-patient and out-patient therapeutic facilities.

Underriner said the company will issue a “planned financial update in the next month, when we will look at our region’s finances for the first six months of the year.

“That said, we know that with everything that is happening — from the federal discussions to the recent state budget to the changes in the ways people access health care — we need to continue being very diligent in our work,” Underriner said.

“Part of that includes looking at operational improvement. This is something we do year-round. In fact, since the start of health care reform in 2011, we have cut $340 million in costs here in Oregon.”

He said, “Health care funding will continue to evolve at both the federal and state level. As a leader in providing services, Providence has the responsibility to create the best organizational model that allows us to serve our community’s changing needs in the most cost-effective way possible.

“We are working to reduce our cost structure and increase our overall sustainability so that we can continue to serve. We are focusing first on process and cost efficiencies, and will do everything we can to avoid affecting jobs.”

Underriner noted the issues facing Oregon include a new tax on hospitals and health insurers, and uncertainty regarding federal government funded health care.

“This means we need to continue to focus on meeting the needs of the community in light of the revenue we receive. It’s unlikely that reimbursements will improve anytime soon,” he said.

“It’s important for people to understand that all across the health care industry, we’re looking at unprecedented change. But here’s what doesn’t change: our commitment to serving people. Part of that commitment involves doing some tough work, assessing how we’ve done things, looking at what works and what we can improve. That’s our new normal.”

As an example, he pointed to Providence’s “Elder at Home” service, which keeps “frail elderly” in their homes and helps provide care in the right place at the right time, thus reducing admissions to the emergency room.

“We have developed an entire portfolio of lower-cost care through our Express Care services, providing patient consults via phone or same-day clinic appointments,” Underriner said, “and our telehealth services to connect rural and smaller hospitals are now throughout Oregon, which means patients get immediate specialist consults in their community hospital.”