CHI Texas unit lays off 459 as part of restructuring
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.”