Adirondack Health Outlines Long-Term Restructuring Plan

SARANAC LAKE - Like many health systems throughout the nation, Adirondack Health is responding to the economic realities of health-care reform and lower reimbursements with a long-term restructuring plan. The plan will allow our leadership and 900 employees to reorganize operations - all the while providing our communities with the highest level of quality, patient-centered care.

 "We provide best-in-class healthcare to the people of the Adirondacks," said Chandler Ralph, President & CEO of Adirondack Health. "But we have been losing money on many services at an unsustainable rate. The healthcare reimbursement system is broken and rather than being rewarded for our commitment to the region, hospitals and health systems nationwide are being financially penalized."

In 2011, 59 percent of all hospitals in New York State experienced a negative bottom line, a trend that will most likely continue in 2012. Despite this trend, Adirondack Health has a $120 million annual impact on the local economy - a responsibility it takes very seriously.

Added Ms. Ralph, "I am confident we will overcome these financial challenges to ensure that we can deliver leading care to the region for another hundred years. This plan is a responsible and sound foundation that will allow us to move forward and remain focused on our patients, residents and communities."

The plan includes:

• A savings of $1.5 million in pharmaceutical purchases through the 340-B federal drug pricing program.  This is the first time Adirondack Health has qualified for the program.
• Moving transcription services to a specialty firm for annual savings of $250,000.  All local employees retained.
• Freezing salaries for all management and leadership staff in 2013. This represents 4.4 percent of the workforce at Adirondack Health.
• Reduction of workforce by 17 positions through job cuts and shared responsibilities. In addition, 8 unfilled positions will remain vacant.  In some cases, personnel have the option of pursuing other openings within the organization. 
• Of the 17 positions, one-third are management level.
• Requesting re-openers on labor contracts with NYSNA and UFCW.

"While workforce reduction may affect some areas of the system, patient care will remain properly staffed," said Margaret Sorensen, Chief Nursing Officer for Adirondack Health "We will work closely with affected employees to assist them in transitioning to positions in the Adirondack Health system for which they may be qualified. Those who are unable to pursue such opportunities will be offered outplacement services through human resource programs to help as best we can."

In addition to the outlined fiscal strategies, Adirondack Health has implemented initiatives that focus on preventive care to improve patient outcomes.  Two examples are the Medical Home Project and Adirondack Care Transition Program. These initiatives put the patient at the center of a team of compassionate care givers who provide a range of health, education and supportive services to lessen the need for more costly care associated with hospitalization.

"These services will focus on preventing hospitalization when possible by treating health conditions through enhanced outpatient care," said Ms. Ralph. "These changes and challenges do not lessen the commitment of our skilled and caring staff to supporting the emerging needs of the community with a range of patient-centered health care programs and services."

ABOUT ADIRONDACK HEALTH

Adirondack Health is the new name for the family of facilities and individuals who have provided sophisticated care to the Tri-Lakes region for the past 100 years.  They include: Adirondack Medical Center, Adirondack Medical Center/Lake Placid, Mountain Health Center (Keene), Lake Placid Health Center, Tupper Lake Health Center, Mercy Living Center (Tupper Lake), Uihlein Living Center (Lake Placid) and Adirondack Dental Service (Lake Placid).  The highly trained and compassionate individuals who work at these facilities provide a full range of medical, surgical and long-term care services.

Adirondack Health is not only the leading provider of health care for the residents and visitors of the Tri-Lakes region, it is also the largest private employer in the Adirondack Park.  In addition to the physical and social health of the community, Adirondack Health plays a significant role in the economic health of the community.  With over 900 full-time employees, Adirondack Health has a $120 million annual impact on the local economy.  This impact comes from the generation of payroll, income and property tax revenue, purchase of goods and services and associated commerce generated by our employees living throughout the area. As a result of these factors, and more, Adirondack Health is a key community institution, and an advocate for improving the health and economic well being of the patients, residents, businesses and visitors it serves. 

We are leading care for a healthy community.

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