Analysis of NYC Health and Hospitals Employee Layoffs in 2017

This report analyzes the reasons behind the NYC Health and Hospitals (H+H) employee reductions, which occurred in 2017. The report examines the financial pressures, including operating losses and budget deficits, that led to the removal of management positions. It details how the healthcare system restructured its management, including the elimination of positions and the restructuring of the workforce. The report discusses the strategies NYC H+H employed and suggests alternative approaches to manage the restructuring more effectively. The analysis covers the importance of focusing on efficiency, involving employees in decision-making, and making consistent public declarations regarding the changes. The report concludes that NYC H+H needs to adapt to a more coordinated healthcare setting and address the needs of vulnerable populations.

Running head: HEALTHCARE
HEALTHCARE

1NYC HEALTH AND HOSPITALS
Introduction
The NYC Health and Hospitals is known as the largest public health care system in
the United States. The NYC Health and Hospitals offer vital inpatient, outpatient as well as
home-based services to over one billion New Yorkers every year in over 70 locations across
the five boroughs of New York (Klein, 2017). This report will analyze underlying reasons
behind NYC H+H removal of employees and strategies in which the organization can deal
with the elimination of management positions.
Discussion
Reason behind NYC H+H removal of management positions
NYC Health and Hospitals recently have removed around 476 management positions.
The layoff of management positions in the New York Health and Hospital has been executed
in order to establish robust, more agile and highly consistent public healthcare provision
system. Additionally, the sudden restructuring of excessive management positions in the
organization has been seen as an essential action to direct resources in a better way and focus
on areas which are highly crucial for the organization chiefly the front line of patient care.
Meanwhile, Marsh (2019) has claimed that seven years ago the New York City Health
and Hospitals Corporation now called the NYC H+H had experienced an expected deficit of
around $1.2 billion. Such critical situation has led the then president of HHC Alan Aviles to
strategize the recruitment of an external consultant in order to direct the health care system
undergo effective reorganization, if the state and the city make similar investments in order to
support the healthcare organization execute its operation.
Furthermore, Klein (2017) has mentioned that NYC Health and Hospitals have experienced
nearly $776 million operating loss for the first half of the FY17 which further raised till 85%

2NYC HEALTH AND HOSPITALS
more than what has been measured in 2015. Although, its total operating outlays have
experienced a rise, the health system failed to leave behind the expenditure. As per report,
aggregated operating revenues increased to approximately $6.7 billion whereas the total
expenses increased to almost $7.4 billion. Such a restructuring of management positions has
been done in order to close an expected loss of $ 1.1 billion gap in 2018 instigated by high
expenses and incompetence in the health system and payment alterations at the federal and
state levels (McGlynn, 2019).
Ways in which NYC H+H has restructured its management position
As per reports around 396 managers have been given the letter of layoff and the
additional 80 unfilled positions are likely to be eliminated in the upcoming days. However, it
has been claimed by the health organization that around 98 staff will have the scope to return
to pre-management positions.
In order to acclimatize to perplexing health care landscape, H+H embarked on a multi-year
streamlining of its management position to help close $1 billion plus shortfall.
Additionally, the healthcare system did not share any extra information regarding the layoffs.
The layoffs have followed several changes in executive leadership at NYC H+H Hospitals
(Fisher & Sanderson, 2018). Furthermore, the health care system has declared four new
CEOs with five additional system facilities known as new CEOs.
Strategies to Manage Restructuring of Management Positions
Focus on removing inefficiencies, not staff- While layoffs undoubtedly impact employees,
NYC H+H strategic focus must primarily be on redundant or less efficient positions. Thus,
NYC H+H must put emphasis on every unit in lieu of cost inefficiencies (Campanile, 2018).
NYC H+H must include upright and dependable employees-Furthermore, NYC H+H
must include upright and dependable employees in the decision-making process. In the view
of Hammond and Pope (2018), once the healthcare system has decided to implement layoffs

3NYC HEALTH AND HOSPITALS
in order to improve productivity, the primary focus must be on determining which
departments are excessively staffed. NYC H+H must understand that this process must
involve reliance and trust of each unit of the health care organization. However, as per Marsh
(2019), reliable staff should not necessarily involve employees from top hierarchy. NYC
H+H must identify the quality of expertise to deal with lay-off in a different way.
NYC H+H must make a consistent public declaration-Lastly; NYC H+H must make a
consistent public declaration regarding the restructure of management positions. Furthermore,
the decision must be affirmed by the company and the public.
Conclusion
Therefore from the above discussion it has been concluded that NYC H+H needs to
adjust to a highly coordinated and community centric healthcare setting. No resolution to
financial distresses will do well to NYC H+H without accepting NYC H+H’s contact with
New York’s wide-ranging healthcare system. It must focus on recognizing the burden of
caring for the deprived and most vulnerable sections.

4NYC HEALTH AND HOSPITALS
References
Campanile, C. (2018). NYC’s hospital system axes 35 workers in savings push. Retrieved 22
January 2020, from https://nypost.com/2018/03/10/nycs-hospital-system-axes-35-
workers-in-savings-push/
FISHER, J., & SANDERSON, B. (2018). NY Daily News - City Health and Hospitals
Corporation targeted older employees for layoffs: suit. Retrieved 22 January 2020,
from https://www.nydailynews.com/new-york/ny-metro-health-and-hospitals-layoffs-
20180705-story.html
Hammond, B., & Pope, C. (2018). The Impact of Single-Payer on New York
Hospitals. Empire Center and Manhattan Institute, November.
Klein, M. (2017). City Health and Hospitals system axes 70 workers without warning.
Retrieved 22 January 2020, from https://nypost.com/2017/02/12/city-health-and-
hospitals-system-axes-70-workers-without-warning/
Marsh, J. (2019). City hospitals struggle as spending skyrockets: report. Retrieved 22 January
2020, from https://nypost.com/2019/09/19/city-hospitals-struggle-as-spending-
skyrockets-report/
McGlynn, D. (2019). De Blasio’s health-care problems start long before he tries for
‘universal’. Retrieved 22 January 2020, from https://nypost.com/2019/09/22/de-
blasios-health-care-problems-start-long-before-he-tries-for-universal/