CHI Texas unit lays off 459 as part of re­struc­tur­ing

Modern Healthcare - - REGIONAL NEWS - —Maria Castel­lucci

The Texas di­vi­sion of Catholic Health Ini­tia­tives laid off 459 em­ploy­ees last week as part of its on­go­ing re­struc­tur­ing plan. The cuts, which rep­re­sent less than 4% of the Texas di­vi­sion’s work­force, af­fect em­ploy­ees at CHI St. Luke’s Health and CHI St. Joseph Health. All in all, the di­vi­sion elim­i­nated 620 po­si­tions, with 161 of those cur­rently va­cant.

En­gle­wood, Colo.-based CHI has been in the midst of a turn­around plan to de­crease debt and im­prove fi­nances as it pur­sues a merger with San Fran­cisco based-Dig­nity Health.

CHI proved last month its turn­around plan was gain­ing trac­tion when it re­ported im­proved fi­nances in its sec­ond quar­ter. The 103-hospital sys­tem posted oper­at­ing losses of $75.6 mil­lion be­fore charges in the quar­ter ended Dec. 31, com­pared with oper­at­ing losses of $93.7 mil­lion in the year-ear­lier quar­ter. Rev­enue rose to $4.2 bil­lion from $4 bil­lion a year ear­lier.

De­spite the im­prove­ments, S&P Global Ratings and Moody’s In­vestors Ser­vice re­cently down­graded CHI’s debt rating two notches above junk. An S&P an­a­lyst said it will take “sev­eral years on the cur­rent fi­nan­cial im­prove­ment tra­jec­tory for CHI to re­turn to a higher rating.”

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.