Erlanger Health System officials, making cutbacks to deal with $12.5 million in losses this fiscal year, said 29 managers and directors were notified Thursday that their posts are being eliminated.
Erlanger officials said, "As announced last week, the second phase of Erlanger’s labor reorganization is nearing completion. The target of that phase was to achieve a 20 percent reduction in manager and director positions. Management Forum was notified yesterday that 29 managers and directors have been affected.
Six of the 29 are voluntary separations. A few departments are still under review which may result in the elimination of additional management positions between now and March 31."
The third phase, involving reductions at the staff level, began today and will continue through March 31, officials said.
Managers were instructed "to conduct a review of what can be done to make their departments more efficient and effective. They were charged with looking for greater efficiencies within their departments, identifying any cost-saving measures in their budgets, including job eliminations, and reporting back to their Vice-Presidents next week. "
Based on management recommendations to senior leadership, voluntary separation packages will be offered to employees in selected departments and/or job classifications, starting as early as next week. Unlike the executive and management reorganization, not all Erlanger employees will be offered a voluntary separation package. Job eliminations will occur in selected departments, based on departmental performance and productivity, and other operational factors. As with management restructuring, great care will be taken to ensure that patient care will not be affected.
"The process of staff job eliminations will not occur at one time, but throughout the month of March. We will be moving swiftly through this process, but in a very thoughtful manner.
As stated last week, we will move through the voluntary separation process first. Based on the response to our voluntary separation program, involuntary separations may be necessary. Any involuntary separations will be processed adhering to the Human Resources Reallocation of WorkForce Guideline. Per this guideline, separations are based on seniority within specific job titles within a department."
Erlanger is also making staff reductions at Hutcheson Hospital in Fort Oglethorpe, which is now part of the Erlanger network.