Presence Health plans 250 layoffs to cut costs
Chicago-based Presence Health, which includes hospitals in Elgin, Des Plaines and Aurora, plans to lay off about 250 employees over the next three months, according to the Catholic hospital network.
The network also will not fill positions when employees leave, and that natural attrition could include about 450 positions, officials said. The network could save about $50 million from the action, a spokesman said Thursday.
CEO Michale Englehart told bondholders on Wednesday the network needs to cut costs after reporting a loss last year.
Presence Health includes Presence Holy Family Medical Center in Des Plaines, Presence Mercy Medical Center in Aurora, and Presence Saint Joseph Hospital in Elgin, among others.
"Although our liquidity is secure and we have a strong balance sheet, we are committed to improving our operations in 2016, setting our health care system onto stable financial footing. All operations are being reviewed as a critical part of this effort, including our organizational structure," Englehart has said.
Presence Health financial results for 2015 show losses of 7.4 percent, or $186 million, on operating revenue of $2.5 billion, according to the system's report.
Although the total 2015 loss amount is significant, these results do not affect the system's ability to pay operating expenses, including wages, supplies and bond and debt service. Presence continues to maintain a strong balance sheet, with approximately $940 million in cash, Presence said in a statement.
Presence also will continue to hire in key positions when necessary, a spokesman said.