The newly combined Excela and Butler health systems laid off a total of 13 manager-level staff members on Wednesday, according to spokesperson Tom Chakurda.
The positions were eliminated “from across both sides of the new system,” Chakurda confirmed, and were from support functions that did not involve direct care personnel.
“This is part of our initiative to reduce expenses in light of the economic pressures our industry and our organization are facing,” Chakurda said.
In a statement, Chakurda declined to detail whether future layoffs were expected, noting that speculation would be “highly inappropriate” because the company’s ongoing expense reduction measures will require “an ongoing process of analysis coupled with operational performance.”
According to an internal letter signed by President and CEO Ken DeFurio that was obtained by the Tribune-Review in late February, the newly combined system is struggling financially. The letter was sent to employees and medical staff at the Greensburg- and Butler-based health system.
“We must substantially reduce our operational costs,” DeFurio wrote in the letter, citing a future “significant expense reduction plan.” Such a plan was need, according to the letter, in response to economic pressures from the pandemic, staff shortages, inflation, cost increases, declines in reimbursement rates and the stock market.
For the six-month period ending Dec. 31, Butler Health System reported an operating loss of more than $23 million, according to a disclosure report.
At Excela, the same six months in 2022 saw an operating loss of more than $15 million.
