Ohio health care provider Summa Health plans to eliminate hundreds of jobs after declining patient volumes eroded its projected 2017 bottom line.
The Cleveland Plain Dealer reports that Akron-based Summa plans to discontinue or consolidate selected services and cut 300 positions after forecasts showed $60 million in operating losses for the year.
About half of the positions targeted for elimination are already empty. Cliff Deveny, the company’s interim president and CEO, told the paper that although officials hope to trim its layers of administration, “all functions are affected” by the cuts.
The Akron Beacon Journal noted that Summa originally expected to see about $30 million in profits again in 2017, but officials blamed service delays, concerns among referring doctors about its quality of care and decisions by state and federal officials for a steep drop in patient admissions.
“This year, inpatient and outpatient volumes are dramatically down and, as a result, we are facing staggering operating losses,” Deveny wrote in an internal memo this week. “While we have considerable cash in reserve to protect us for the short term, this trend must stop immediately.”
Deveny added that if the provider is unsuccessful, it could be sold in coming years.
Summa also plans to re-evaluate upcoming capital projects, although an ongoing $270 million project in Akron will continue.
Deveny was tabbed as Summa’s interim leader in March after his predecessor resigned following a contract dispute with its emergency physicians. Summa’s board is expected to name a permanent chief executive by this fall, and Deveny will likely be a candidate for the position.