Adventist Health reorganization includes administrative layoffs

Adventist Health is reorganizing with a plan to cut more than $100 million in administrative expenses.

Adventist Health has made the difficult decision to abolish systemic administrative positions on its staff, the statement said. The number or percentage of staff being laid off was not announced, but the Roseville, California headquarters saw 59 staff cuts, according to the agency. Sacramento Business Journal.

Adventist Health has filed a California Worker Adjustment and Retraining Notice Act notice required during a major downsizing, the release said. It provided affected employees with 60 days’ written notice.

“Reducing the number of health care networks strengthens our operational structure and expands the meaning and purpose of our networking model, as well as expanding the geographic reach of ONE Adventist Health,” said Adventist Health CFO Todd Hofheins. “It also reduces overhead and administrative costs.”

WHY IS IT IMPORTANT

As part of a strategic reorganization, Adventist Health is merging seven health care networks into five system-wide networks: Northern California Network, Central California Network, Southern California Network, Oregon Network, and Hawaii State Network.

In addition, Adventist Health and Mid-Columbia Medical Center (MCMC) recently approved an agreement to bring MCMC into Adventist Health. Pending final regulatory and state approval, MCMC will become part of Oregon’s Adventist Health network to serve residents of The Dalles and the Columbia Gorge.

“Our commitment to rural and urban healthcare remains unwavering, and we are expanding elsewhere to invest in and transform integrated care delivery,” said Kerry L. Heinrich, president and CEO of Adventist Health.

BIG TREND

Adventist Health is a faith-based, non-profit, integrated health care system serving more than 80 communities on the West Coast and Hawaii. It has 37,000 employees, physicians, allied health workers and volunteers.

Earlier this year, Adventist Health announced a restructuring of its top management. Todd Hofhanes, who was named CFO in 2020, is now COO.

John Beeman, who has been Director of Business and Human Resources at Adventist Health since 2018, has become the new Chief Financial Officer.
Adventists say Bill Wing, president and chief strategist, has retired.

Twitter: @SusanJMorse
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