This story was originally produced by the Valley News. NHPR is republishing it in partnership with the Granite State News Collaborative.
Dartmouth Health has laid off 124 employees and eliminated 303 open positions across Dartmouth Hitchcock Medical Center in Lebanon and the Dartmouth Hitchcock Clinics Southern Region.
In a news release issued at 5:32 p.m. on Tuesday, the health system justified the job cuts as a means to “improve long-term sustainability.”
Dartmouth Health, a Lebanon-based nonprofit organization, previously reported a $63.5 million dollar deficit, the Valley News reported in June.
The health system doesn’t expect “these employment actions to negatively impact patients, as they have been carefully planned with patient needs at top consideration.”
“Changes include the consolidation and restructuring of executive roles and administrative leadership, as well as the elimination of select programs,” the news release said.
Rising operating expenses, which have grown by 12%, is outpacing patient revenues, according to the news release.
“Labor, supply and drug costs continue to rise, while insurance companies are paying less and taking longer to pay,” the news release stated.
The current pace of expenses, DH said, “is unsustainable and further adjustments were necessary.”
“The employees affected by these changes have made meaningful contributions to Dartmouth Health, our patients and our communities,” Dr. Joanne Conroy, CEO and president of Dartmouth Health, said in the release. “Some have spent many years serving this organization. The decision to eliminate a position or program does not diminish the value of the work these colleagues have done and the contributions they have made.”
Impacted programs include Tele-ICU and Tele-ED — services DH said weren’t sustainable at their current scale without outside funding.
“Leadership is working closely with affected facilities, of which more than half are Dartmouth Health members, to ensure alternative patient care plans are in place,” DH stated. “This decision presents an opportunity to review and further understand how to continue to integrate clinically in these areas across Dartmouth Health.”
Also impacted is the New England Alliance for Health (NEAH), which was established in 2009 to support collaboration among community hospitals, behavioral health centers, and home health agencies in Northern New England, and has evolved due to the growth of the health system.
“As some member organizations have joined Dartmouth Health or other systems, the need for a separate alliance has diminished,” according to the news release.
In addition to these programs, the health system decided that outside vendors are able to deliver more employee training more “cost-effectively” than by continuing the Lean Six Sigma Yellow Belt and Green Belt employee training program.
“In April, DH created an Acceleration to Transformation Office to quickly identify ways to improve financial health while protecting patient care through a thorough review of every major area of operations,” DH stated.
The Acceleration to Transformation Office is tasked with reviewing capital spending, contracts, billing, supplies, programs, workflows, and other operating costs.
DH shared changes already implemented by the office since its formation: “reduction of travel and conference participation, reduced reliance on traveler positions, and strategic continuation of capital spending and construction work to expand patient capacity to meet demand.”
“In an effort to be fully transparent, I shared with our employees in July that the ATO would be reviewing staffing models and today’s eliminations are a result of that informed work,” Conroy said in the news release. “Eliminating positions is among the most difficult decisions any organization can make, given the impact on our colleagues and their families.”
Nevertheless, she went on, “difficult choices are necessary to ensure Dartmouth Health is sustainable and well-positioned for the future, while continuing to fulfill our mission and serve those who depend on us.”
Last year, DH, the largest private employer in New Hampshire, announced a hiring pause amid threats to Medicaid and research funding, the Valley News previously reported.
In June 2023, Dartmouth Hitchcock Medical Center and Dartmouth Hitchcock Clinics laid off 75 workers and eliminated about 100 vacant positions to address a budget deficit.
On Tuesday’s announcement of the health system’s latest restructuring efforts, DH pledged its commitment “to implementing the best-practice financial resiliency program moving forward and to ongoing review of position and program structures to ensure sustainability and successful management of operations.”
“Impacted employees will be offered resources, transition support and opportunities to pursue other roles within the health system,” the news release stated.
