Beaumont Hospitals Axed About 60 Staff; More Layoffs to Follow

Beaumont Hospitals, a regional medical system in the greater Detroit, Michigan area, has slashed a total of 60 managerial and administrator positions since the fall as part of a major restructuring plan developed in response to federal health care reform. The three-hospital system aims to generate an estimated savings of $3 million to $4 million a year through job cuts and other cost-cutting measures.

Colette Stimmell, director of corporate communications for Beaumont Hospitals, said that the number of laid off workers is in fact higher than the number originally planned. She added that the hospital is still reviewing its organizational structure to pinpoint the areas that need to be reduced. “We are looking at how we manage various functions across the organization and opportunities to consolidate. We are changing the way we deliver care through process and technology improvements so that we can reduce cost and improve efficiency while enhancing quality and value.”

Stimmel added that hospital will also remove some staff-level employees soon. However, she did not elaborate on the details as to an exact number of workers to be laid off and when. “Our approach is to always protect the positions of bedside caregivers, especially nurses, as much as we can. So the vast majority of the affected staff positions are in support and back-office functions. The hospital is generally able to place up to 75 percent of affected staff into other positions.”

Meanwhile, other Metro Detroit hospital systems such as Henry Ford Health System, Saint Joseph Mercy Health System, Oakwood Healthcare Inc. and the Detroit Medical Center remained stable and have no reported recent layoffs. Officials at those hospitals confirmed that they have no immediate lay off plans.