Health system cuts 28 jobs in state

CHI cites cost-reduction after merger with Dignity Health

Catholic Health Initiatives has eliminated 28 jobs in Arkansas, nine of them unfilled positions, in a cost-cutting move linked to the merger earlier this year of two nonprofit health care giants.

Joshua Cook, a CHI spokesman in Little Rock, said Thursday the 28 positions affected were across the hospital system’s operations in Arkansas. CHI operates CHI St. Vincent Infirmary in Little Rock and hospitals in Hot Springs, Morrilton and Sherwood. Its website says it has 4,500 employees and 1,000 medical staff in the state.

“Our top priority is providing the best care for our patients,” Catholic Health Initiatives said in a statement. “As we strive to meet the changing demands for care in the communities we serve, we continuously assess our resources and how best to utilize them effectively and efficiently. When staffing adjustments are necessary, we work closely with affected employees to identify other opportunities in our system for which they may be qualified.”

KATV-TV, Channel 7, in Little Rock, first reported the news Wednesday.

Catholic Health Initiatives, based in Colorado, and California-based Dignity Health merged Feb. 1. The combined company is CommonSpirit Health, based in Chicago, with 142 hospitals in 21 states, more than 150,000 employees and some 25,000 physicians and advanced practice clinicians. By revenue, at $29 billion, it is the nation’s largest nonprofit health system, CommonSpirit said.

Local operations under CHI and Dignity retained their names and services following the merger.

In its first annual financial report since the merger, CommonSpirit in early October reported an operating loss of $602 million for fiscal 2019. As separate companies in the last quarter of 2018, they reportedly lost a combined $552 million.

“We know this is not an easy task and that we face challenges in the near term, which is why we are investing in a strong, disciplined business model that will help the organization evolve to meet the changing health care needs of our communities,” Lloyd Dean, co-chief executive officer of CommonSpirit, said in a statement released at the time of the annual report.

Dean previously was the CEO of Dignity Health. CHI’s former CEO, Kevin Lofton, is co-CEO of CommonSpirit.

The financial report, according to Modern Health, listed $21 billion in operating revenue for fiscal 2019, which ended June 30.

Officials said they were looking at saving $2 billion over four years as part of the merger.