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SALT LAKE CITY — Intermountain Healthcare said Monday that it eliminated 396 jobs and created 107 new positions as part of its structural overhaul it launched late last year.
Of the positions that were eliminated, 59 were already vacant, and a total of 67 people in jobs that were cut "left Intermountain because … there was not another suitable position," the hospital system's top leadership announced in a newsletter emailed to employees.
The remainder of workers whose jobs were eliminated ultimately stayed with Intermountain in some capacity and make up "part of 1,075 caregivers that now have redesigned jobs and job titles, which include new responsibilities and leadership opportunities," the organization said in its newsletter.
Those changes are in addition to announcements made earlier this year that 98 information technology employees and about 2,300 billing and scheduling workers at Intermountain would be outsourced to different companies.
The totals announced Monday are the clearest indication so far of precisely how many employees were affected in some way by Intermountain's large-scale reorganization, which began in earnest last December. Employees were told Monday that "the organization redesign is about 98 percent complete."
Intermountain leaders were reluctant earlier this year to release estimates on how many employees may ultimately be left out of a job, saying it was hard to project the results of its efforts to find other jobs within the organization for workers displaced from their positions.
Intermountain told employees Monday that most of the 396 positions eliminated were in "management."
"The result is a reduction in management-level jobs and an increase in the number of frontline caregivers," Rob Allen, senior vice president and chief operating officer of Intermountain, said in the newsletter.
Intermountain is Utah's largest employer, with more than 37,000 workers, and runs 22 hospitals and 185 clinics.
Those who lost their jobs and didn't find work elsewhere in Intermountain were assisted in their search for new employment, according to Allen.
"Our human resources team has worked hard to help these 67 people through their transition and help them find new job opportunities," he said. "We know this has been challening for them and their families, and our team has worked diligently to support them through this."
Allen said Intermountain acknowledged the total 1,075 employees with updated job descriptions have also been through "a demanding journey."
"We appreciate the flexibility to take on new responsibilities and roles," he said.
Of the large number of employees who were outsourced, "nearly all of them accepted" the offer available to them at their new employer, Allen added, though the precise number of employees who declined was not provided.
Intermountain's reorganization started by getting rid of its regional reporting structure and switching instead to a dual leadership hierarchy consisting of a Community Care Group and a Specialty Care Group. All medical providers at Intermountain now report to one of those two groups.
Intermountain also divided its reorganization efforts into 43 different affected teams of employees. The organization said Monday that "we have approved the designs of almost all" of those.
Earlier this year, KSL spoke with 15 current and former Intermountain employees who described low morale at their workplace and argued the restructuring was heavy-handed and uncalled for in light of the hospital system's successes.
Intermountain CEO Marc Harrison said in response to those interviews that the organization was doing its best to preserve jobs, but that he also acknowledged the layoffs would be "very big for each of the people who's affected." He promised then that those permanently displaced from Intermountain would be "an extremely small percentage of our overall workforce."
Harrison said Monday that the changes were necessary in order to keep Intermountain's services affordable.
"Unless we address our costs, many people aren't going to be able to afford their health care," he said in the message sent to employees. "And our premiums are going to keep going up, we won't be competitive, and it will be bad for everyone."
Harrison also said that the changes were an effort to keep up with "unprecedented change going on right now in health care."
"Great organizations go through change at the moment it becomes appropriate. They don't wait for things to become an emergency," he said.
Intermountain's newsletter said its "old structure made it more difficult to deliver the same consistent care everywhere."
"We're facing unsustainable increases in the cost of health care, and by better integrating our team and streamlining our services, we're ensuring the continued stability that's important to our caregivers, our patients, and everyone we serve," Allen said in the message.
Without going into detail, Allen also hinted at aspects of the restructuring which didn't "go exactly right the first time."
"We experienced some of that, as we expected, so we'll need to continue to adjust and adapt," he said.
Allen also said Intermountain's leadership was sorry "to everyone who's felt anxious during this process."
"We're sorry for any discomfort you've experienced, and we appreciate your perseverance, your patience, and your continued work to help us do the right things for our patients," he said.
