By PETER HUSSMANN
Skiff Medical Center is undertaking an organizational restructuring that will include the elimination of selected management positions, limited staff reductions and changes in job descriptions to deal with the "financial crisis" that has gripped the city-owned hospital.
"It is apparent that Skiff is facing a financial crisis and changes need to be made," said Gary Kahn, chair of the hospital board. "Many hospitals in Iowa and across the nation are experiencing tough economic times and Skiff is no different. The board believes in the people and talent of this institution. The Board of Trustees has begun to take the necessary steps to reverse the financial decline that threatens the future of this hospital."
Skiff trustees have met twice in closed-door sessions to discuss the findings of the operational assessment conducted by the Kansas firm B.E. Smith and Associates. The report, the board said in a statement released to local media today, contained a number of recommendations focused on financing, staffing and organizational design.
Kahn said some of the recommendations, such as the establishment of a board finance committee, have already been implemented. Other changes are being made in billing and collections processes, reduction in the use of agency staffing, initiating hospital charge master review, reviewing contracts and renegotiating contracts for payments from insurance companies, he said.
"We have made progress with the help of our interim leaders and the efforts of many of our staff," Kahn said.
Year-to-date revenues over expenses from operations at the hospital currently stands in a $2.3 million hole with only June results yet to report. Last year through May, operating losses at Skiff stood just over $1 million. Two years ago, the hospital recorded a $1 million profit. Skiff employees have had their salaries frozen for the new fiscal year.
Kahn said it is too early in the process to identify the number of positions to be cut, noting some of the reductions may be made through attrition. He said efforts will be made to reassign qualified staff potentially impacted by the reorganization. The hospital will continue to look for ways to cut other expenses.
Skiff is currently in the process of soliciting proposals from executive search firms in an effort to bring a new chief executive officer on board by no later than Jan. 1, 2010. Kahn said interim CEO Francie Jahn will continue to work with staff and the consultants on implementing the reorganizational changes.
"It is imperative that our focus remains on making Skiff a financially strong organization and ensure that it remains a key asset to the communities we serve," Jahn said. "We have some very difficult times ahead but we are committed to supporting our mission of providing compassionate, personalized patient care."
The trustees said they will continue to give periodic public updates as the reorganization process continues. Jahn will update Skiff employees as changes occur.
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