Lifespan, Rhode Island’s largest hospital group, has laid off 20% of its executives as part of a strategic restructure aimed at streamlining operations and reducing executive overhead. The move, confirmed by Lifespan President and CEO John Fernandez, is expected to save the organization $6 million in the fiscal year beginning October 1.
The restructuring is part of a “one-system, one-team” approach designed to allocate more resources to patient care and support services. Fernandez emphasized that starting the cuts from the executive level allows the organization to better serve its patients and streamline its operations.
Lifespan did not disclose the exact number of executives affected by the layoffs. However, the cuts come at a time of significant change for the hospital group, which is preparing to rebrand itself as “Brown University Health” in partnership with the university. The organization is also finalizing the purchase of two Southeastern Massachusetts hospitals, St. Anne’s in Fall River and Morton in Taunton, from bankrupt Steward Health Care.
Despite posting a $71.5 million operating profit for the nine months ending June 30, Lifespan’s core operations remain in the red, with the profit driven by one-time items such as a federal settlement. The organization hopes to offset some losses through investment income as it works to stabilize its finances.
