To All HHSC Employees and Physicians: August 22,2014
It is our sad duty to inform you that, effective September 2, 2014; HHSC will implement a system wide reduction in force (RIF). HHSC values its employees and this decision was an extremely difficult one to make.
The current financial condition of Hawaii Health Systems Corporation is dire. For FY 2015 (July 2014- June 2015), we are projecting a $48 million shortfall. The 2014 Legislative Session was a very challenging and disappointing one for HHSC. Several key requests for additional funding were denied.
Compounding matters, we project Medicare/Medicaid revenue reductions of $5.7 million due to Federal Budget Sequestration this fiscal year. Overall, expenses are trending upward far exceeding our revenues.
All of these factors have necessitated an intense operational review process throughout HHSC. Every region is examining internal operations on a comprehensive basis from productivity management to work flow processes. Programs and services are being examined more closely.
All Boards (Regional and Corporate) are fully engaged with their respective management teams in developing contingency plans to meet the financial shortfall. The contingency planning process has identified various actions to control expenses more closely such as the management of overtime and review of all vacancies. Some regions have already taken measures to significantly reduce contract staffing and eliminate positions through attrition. Clinical programs struggling to remain viable due to shortage of physicians and other resources are also being reviewed. Each region looked thoroughly at every possible option to address the shortfall with the care of our patients, residents, and employees at the forefront of every decision. Unfortunately,the current financial situation in some regions is not sustainable without significant changes, some of which have resulted in RIF measures.
On September 2, 2014, Regular Civil Service Employees whose positions have been identified for elimination will be notified officially. This notification will begin a 90-day process in which the impacted employee will have 90 days before his/her last day of employment. During this 90-day period, impacted employees will have the option to be placed in a budgeted vacant position. If none exists, impacted employees may choose to exercise the "bumping" process described in the applicable collective bargaining agreement RIF articles/sections. Non- regular employees will also be notified starting September 2.2014. Non-regular employees are not entitled to the RIF process.
Informational meetings are being scheduled for impacted employees so all questions about the RIF process can be answered. Human Resources staff from all regions and the corporate office is prepared to assist impacted employees in every way possible. It is our intent to make this difficult process as supportive as is possible under the circumstances.
The leaders of HHSC truly appreciate the commitment and dedication displayed by all employees in the delivery of quality care to our patients and residents.
Should you have any questions, please do not hesitate to contact your respective Regional and/or Corporate Human Resources Director. Your understanding in this difficult time is greatly appreciated.