NIHD: Staff reorganization due to revenues shortfall

NIHD news release

Northern Inyo Healthcare District is undergoing staff reorganization as the direct result of a shortfall against projected revenues in its 2018-2019 budget. The three-phase restructuring began Friday, Jan. 18.

NIHD CEO Dr. Kevin Flanigan

District leadership, faced with a $1.2 million shortfall against its projected revenues, felt it was necessary to make milder adjustments now rather than be faced with more drastic changes in next year’s budget.  

Chief Executive Officer Kevin S. Flanigan, MD MBA, stressed the District is early enough in its projections that small changes can have a big long-term impact. “If the District waits until the next budget year, the District will have to both make up for this year’s deficit and cut to prevent another deficit year,” he said.  

Dr. Flanigan also stressed that deficit is against budget projections and is not currently a situation in which current expenses are exceeding current revenue. He noted, however, that if something is not done now, this could very quickly become a matter where revenue does not cover costs.

The reorganization calls for a hiring freeze for all non-clinical positions, a re-alignment of responsibilities among these departments, a reduction in non-clinical workforce, and the potential for an offer of early retirement where possible. These changes, to be clear, do not affect any health care providers or clinical staff. These changes affect support staff in administrative areas.

“This move does not mean the District is in financial trouble from a cash-on-hand basis,” Dr. Flanigan said. “We currently can pay our bills, and our expenses are matching what we budgeted. However, we are experiencing fewer surgeries and fewer hospitalizations than we projected.”

A reduction in hospitalizations was anticipated, just not to the degree NIHD experienced in the first six months of its fiscal year.

“As people will recall, the District was moving toward a care model that emphasized improved health rather than critical illness,” Dr. Flanigan said. “We’ve seen an increase in our outpatient clinic visits. Our Emergency Department visits are consistent with budgeted numbers even with the addition of our Same Day Care services. Our transfers out of the area are only up slightly while our surgeries and hospital stays are down markedly. This means that the improved outpatient access and our focus on improved service have kept people healthier; thus less likely to need surgery and less likely to have to stay overnight in the hospital.  However, this also means that the District is receiving less revenue.”

Dr. Flanigan said District leadership has met with staff members during the past few days outlining in detail the current situation, including plans for moving forward. As always, Dr. Flanigan maintains an open-door to those staff who may wish to meet with him privately.

 

4 Responses to NIHD: Staff reorganization due to revenues shortfall

  1. Ickity January 23, 2019 at 8:06 pm #

    Transparent California lists what the employees make. Over $60,000 for most.

     
    • sugarmags January 24, 2019 at 8:31 am #

      $60,000 a year is an average to low salary these days for professional level staff.

       
  2. Jimbo January 25, 2019 at 10:06 am #

    How many hard working locals are losing their jobs during this “re-alignment of responsibilities”?

     
  3. Ickity January 26, 2019 at 10:57 am #

    The problem is that most of the clerical positions are not professional level staff. You have 19 year olds with zero experience that work there answering phones making close to $20/hour. The nurses make closer to $90000 a year, most making significantly more than that for “administrative” aspects, not clinical. Way over the national average. They are overpaid and the nurses union put them way over budget. No one wants to admit that fact because it is Bishop.

     

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