UVM Health Network announces more layoffs

BURLINGTON, Vt. (WCAX) - More layoffs hit the University of Vermont Health Network on Tuesday as part of cost-cutting measures.

The network says 146 positions are being eliminated; 77 of those-- so about half-- are filled. They include 68 staff-level jobs and nine leadership roles. The positions are largely administrative, like finance, human resources, and project management.

Network leaders say these changes are necessary to tackle the affordability crisis. “This isn’t a reflection of their work -- but of the changes happening in health care that are demanding us to take this kind of action,” said UVM Health Network CEO Dr. Sunny Eappen. “Necessity is the mother of invention. We’ve been pushed to do that because we don’t really have another choice if we’re going to continue to serve our patients.”

Other changes include pauses in performance-based raises for all leaders, reducing spending on travel nurses, and minimizing long-term stays in the emergency room. “We look at certain diagnoses and we’re looking for those diagnoses of admission where maybe we’re an outlier compared to national benchmarks, and trying to reduce that length of stay. Find the reasons why we’re challenged to get those patients out sooner,” said the network’s Dr. Ramsey Herrington.

The network also announced it would be halting performance-based bonuses for all leaders until September. In total, the new cuts aim to save the network over $180 million.

“What we’re seeing today is a microcosm of what’s happening across the country, and particularly in rural health care,” Eappen said.

The changes build on $152 million in cuts and other commitments that the network has already made. However, there is still uncertainty as to whether more cuts could come in the future.

“To be totally transparent, it’s hard to tell right now. But we’re looking at every job -- quite frankly, starting from my role -- across every organization in our system. So, I can’t say no to that yet. I think there are going to be more changes coming up down the road,” Eappen said.

Leaders say those laid off on Tuesday will have the opportunity to apply for other positions within the network.

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