Posted without opinion, bias or editing.
MEMORANDUM
To: St. Mary’s Associates
From: Tim Flesch, President, St. Mary’s Health
Date: May 23, 2013
Subject: Budget Target Update
Over the past several years, there have been dramatic changes in the healthcare industry, which have put providers across the
Over the past several years, there have been dramatic changes in the healthcare industry, which have put providers across the country under increasing economic and competitive pressure. In the innovative tradition of our ministry, each year we have found ways to meet budget targets that permit us to further invest in our communities and best serve our patients.
In the Town Hall meetings on Monday we discussed the budget challenges St. Mary’s is facing as we plan for Fiscal Year 2014. Consistent with nearly all other healthcare organizations nationally, we continue to experience lower than budgeted inpatient volumes and decreasing reimbursement – reaffirming the importance of our future efforts to enhance our ability to prevent and treat illness in less-acute settings. St. Mary’s is performing well and is ahead of budget in Fiscal Year 2013. However, to sustain and grow our health ministry and Mission, we must immediately adapt and re-imagine the way we provide holistic care – body, mind, and spirit.
One of the most important aspects of this transition into the future is our commitment to ongoing communication with you. With this in mind, we must report that these anticipated changes in the healthcare environment have resulted in the need for us to reduce our labor costs through a staff restructuring. This restructuring is necessary for us to reduce our employed and contracted workforce across St. Mary’s Health. This process will take place before the beginning of our fiscal year which begins on July 1. This decision has been made with much concern for everyone who will be negatively affected by this restructuring.
Healthcare systems and ministries across the nation are experiencing similar challenges and making difficult decisions as well. Since 1872, the Daughters of Charity have adapted their health ministry to the changing needs and times through many generations. They have also guided and instructed us on how to make our Mission, Values and identity as a Catholic ministry real in every dimension of our service to people and each other – especially in making and implementing decisions like these.
We understand that this will be a trying time for all of our Associates, but particularly those who are directly affected. There are difficult decisions ahead and we are committed to communicating openly with you throughout this process. I will be hosting weekly update meetings each Friday from 10:30 – 11 AM. A schedule of locations is below.
May 24 – Amphitheatre
May 31 – Manor Auditorium
June 7 – Amphitheatre
June 14 – Manor Auditorium
June 21 – Amphitheatre
June 28 – Amphitheatre
Let me conclude by thanking each of you for your dedicated service to our health ministry. I ask for your continued prayerful support for all of our Associates as we work through this difficult time together.
