November 25, 2008
||Media contact: Kara Gavin
U-M Hospitals and Health Centers budget statement
Update: November 25, 2008
On Monday, Nov. 24, University of Michigan Hospitals and Health Centers CEO Doug Strong updated employees about the status of the UMHHC financial improvement plan, as a follow-up to communications in late October. (see previous summary below.)
Department and program budget plans have now been finalized and will be implemented in coming weeks; further details will be forthcoming.
Despite efforts to meet budget goals through attrition, a hiring freeze for non-clinical positions, and reductions in overtime and temporary positions, reductions in force in a few departments will be necessary.
In all, fewer than 80 UMHHC employees, representing about one half of one percent of the total UMHHC workforce, will receive notifications of reductions in force. These notifications will come in the second week of December, but these employees will remain on the payroll at least through the end of January – or longer in the case of employees with 10 years or more of service.
These employees will receive comprehensive employment transition assistance, continuing into the New Year.
At the same time, all faculty and staff of the U-M Health System will continue to look for ways to increase levels of patient care activity and identify effective cost-management strategies as UMHS strives to improve patient care quality and efficiency simultaneously.
Original statement: Nov. 4, 2008
ANN ARBOR, Mich. -- The University of Michigan Hospitals and Health Centers unit of the U-M Health System has asked certain non-patient care departments to identify ways to reduce expenses in day-to-day operations, to continue redesigning administrative and clinical care functions for better efficiency, and to implement a hiring freeze for non-patient caregiver positions.
This is not an across-the-board cut or freeze, and it affects mainly administrative areas within the Hospitals and Health Centers unit of the Health System. The hiring freeze specifically includes areas such as human resources, communications, information technology and finance.
In general, the Health System remains in excellent financial health. The targeted changes in non-patient care areas will help UMHS adjust to new realities in the regional and national health care market, including changes in the insurance mix of the patient population that is seeking care at U-M.
The goal of this effort is to protect patient-care services while maintaining a positive operating margin. A positive margin on our operating budget is important to the Health Systems efforts to invest in its future through building projects, physical space renovations and other efforts.
Patient volume at U-M has not declined. In fact, more patients than ever are seeking care at U-M facilities.
Hiring continues for nurses, pharmacists, physician assistants and other patient caregivers, to help meet the demand for care.