Sorensen says patient volume has declined five to six percent over the last 18 months, which along with future healthcare changes drove the decision to combine Regional West Physician Clinic and the hospital into one organization and the planned cutting of $20 million in expenses.
Sorensen says the hospital wants to make the cuts by the end of 2015. He says there will be no immediate layoffs or cuts in wages, but he noted efficiencies over time will likely lead over the next five to ten years to a reduction from the current 1,800 employees to 1,600 or possibly fewer workers.
Sorensen says the hospital will be eliminating duplications when combining the Physicians Clinic and the Hospital, which they plan to get done by April 1st of next year. Sorensen says implementation of an 18 month IT upgrade including a changeover in electronic medical records will also begin by April 1st, possibly saving as much as $4 million.
Sorensen will retire by the end of 2014. He says the transition will begin in the middle of next year with the hiring of a new Chief Operating officer who would then take over his responsibilities by the end of 2014.
Sorensen says retaining quality of service, patient safety and efficiencies will be the three values that will guide the hospital in their reorganization.
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