Adirondack Health Outlines Long-Term Restructuring Plan
December 7th, 2012
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.
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
- 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
- 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.
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."
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
(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
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
We are leading
care for a healthy community.
||AMC is accredited by the Joint Commission. Click here to view the Joint Commission Public Notice.
||AMC is accredited by the Healthcare Facilities Accreditation Program.
||Adirondack Medical Center's Bariatric Program and Dr. Michael Hill have been designated as a Center of Excellence by the American Society for Bariatric Surgery.