In response to healthcare reform, Scripps Health announced it is restructuring management with an eye to cutting costs, improving patient care and preserving jobs.
The nonprofit health system is reorganizing every department within a horizontal co-management structure, which aims to standardize clinical and operational functions across the entire Scripps system of five hospital campuses and 20 outpatient centers.
The changes began Oct. 1, 2010, in light of reductions in reimbursement from Medicare and private insurers, according to a press release.
A recent preliminary audit conducted by Scripps’ project management office identified approximately $150 million in variation (and possible annual cost reduction) across the Scripps system. Potential long-term cost savings for Scripps may come from areas as diverse as: coffee vendors ($200,000 in possible savings); clinical laboratory functions ($6 million to $12 million in possible savings); cardiac surgery programs (approximately $4.3 million in possible savings).
Scripps is now divided into four operational divisions:
Corporate Medical Division
, led by Scripps Chief Medical Officer Dr. Brent Eastman, includes the areas of nursing; quality; research and medical management and physician co-management.
• Clinical Operations Division
, led by Scripps Corporate Senior Vice President Barbara Price, includes the areas of clinical support; clinical ancillaries; and clinical service lines.
• Support Services Division
, led by Scripps Corporate Senior Vice President John Armstrong, includes the areas of surgery, pharmacy and supply chain management; facilities design and construction; and support services.
• Administrative Services Division
includes the areas of finance; human resources; legal; audit and compliance; information services; physician services; community benefit; project management; government affairs; marketing and communications; and philanthropy.
To avoid layoffs, Scripps has a Career Resource Center (CRC) to assist employees transitioning to new positions within the organization.