REGIONAL WEST MEDICAL REORGANIZING, AIMING FOR $20-M IN SPENDING CUTS

Posted 10 months ago

By John Axtell

Regional West Medical Center -1Regional West Medical Services…parent of Regional West Medical Center has unveiled an austere reorganization plan aimed at cutting expenses by 8% or $20-million dollars over the next two years.

President and CEO Dr. Todd Sorensen told a news conference yesterday that the reorganization is being driven by a 5-to-6% drop in patient numbers over the last 18 months and by future changes in health care.

The proposed reductions do not include layoffs or pay cuts and with quality of service, patient safety and efficiencies being the three values guiding the effort. Sorensen says the plan seems to have the support of employees.

Sorensen said the core of the reduction package is a merger of the Regional West Physician Clinic and the hospital into one organization, a move intended to reduce duplication.

http://www.panhandlepost.com/wp-content/uploads/2013/11/Todd-Sorensen-RWMC-cuts-13-2.mp3

Sorensen said the merge will take place by April 1st, the same time than an 18-month information technology upgrade that includes a changeover in electronic medical records is to be done, possibly saving as much as $4 million.

Regional West currently has 1,800 employees and Sorensen expects that to drop to 1,600 or fewer over the next 5-to-10 years through increase efficiencies

Sorensen revealed more about his previously-announced plans to retire by the end of next year, saying the transition process to his successor is slated to start next summer with the hiring of a new Chief Operating Officer who will take over fully by the end of the year.

A physician himself,  Sorensen has served as president and CEO of Regional West Health Services and Regional West Medical Center since September 2000.