31, Butler Health System reported an operating loss of more than $23 million, according to a disclosure report.Īt Excela, the same six months in 2022 saw an operating loss of more than $15 million. “We must substantially reduce our operational costs,” DeFurio wrote in the letter, citing a future “significant expense reduction plan.” Such a plan was need, according to the letter, in response to economic pressures from the pandemic, staff shortages, inflation, cost increases, declines in reimbursement rates and the stock market.įor the six-month period ending Dec. The letter was sent to employees and medical staff at the Greensburg- and Butler-based health system. In a statement, Chakurda declined to detail whether future layoffs were expected, noting that speculation would be “highly inappropriate” because the company’s ongoing expense reduction measures will require “an ongoing process of analysis coupled with operational performance.”Īccording to an internal letter signed by President and CEO Ken DeFurio that was obtained by the Tribune-Review in late February, the newly combined system is struggling financially.
“This is part of our initiative to reduce expenses in light of the economic pressures our industry and our organization are facing,” Chakurda said. The positions were eliminated “from across both sides of the new system,” Chakurda confirmed, and were from support functions that did not involve direct care personnel. The newly combined Excela and Butler health systems laid off a total of 13 manager-level staff members on Wednesday, according to spokesperson Tom Chakurda. Independence Health System offers patients nationally recognized quality care in cardiology, orthopedics, palliative care, and maternity as well as a broad range of surgical, medical, emergency, and behavioral health services, and an extensive network of primary care physicians.
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