Blue Hill hospital forced to cut posts

BLUE HILL – In the wake of a $1.9 million operating loss last year, Blue Hill Memorial Hospital has begun to implement a restructuring plan that will eliminate two top management positions.

As a result, one person will be laid off at the hospital, Timothy Garrity, the hospital’s chief executive officer, said Monday. Together with the decision not to fill some current vacancies and other cost reductions, the move will result in a net savings of more than $200,000, he said.

The plan will eliminate the position of director of quality improvement and regulatory affairs. Those duties will be taken over by the chief financial officer and the director of patient care services. The hospital has been searching for a new CFO and hopes to fill the position soon.

In addition, with Dr. Daniel Rissi leaving soon, the hospital is restructuring the positions of medical director and chief of staff that he held. According to Garrity, Rissi recently announced he was leaving the hospital to pursue other career opportunities. He has served full time as chief of staff and medical director. While the hospital searched for a new chief executive officer earlier this year, Rissi served as the interim CEO. During that time, the post of chief of staff became a part-time position, Garrity said Monday.

As overseer of the hospital’s medical staff, the chief of staff deals with credential issues and ensures the medical staff is qualified.

“We’ll ask the medical staff to elect a chief of staff who will serve in a part-time position,” Garrity said.

As medical director, Rissi oversaw the operations of the hospital’s health education center, which will become part of the community relations office, and Peninsula Primary Care, a network of clinics in Blue Hill, Stonington, Bucksport and Castine.

“Peninsula Primary Care will report directly to me while we determine the best way to manage that organization,” Garrity said.

The restructuring plan also includes efforts to increase productivity and volume and to improve the efficiency of its operations. “We intend to reduce our cost without compromising the quality of patient care,” he said.

No more layoffs are planned at this time. The hospital plans to achieve additional cost savings through attrition, to the extent that is possible, said Garrity, adding he plans to do all he can to avoid further layoffs.

“No one is guaranteed a job for life, and I can’t do that here either,” he said. “I plan to try to minimize the number of layoffs that our employees have to endure.”

The hospital’s cost-reduction efforts seem to be having a positive effect. “We’re starting to see some positive results,” he said. “At this point, it’s hard to tell whether that’s just a seasonal blip.”

However, erasing a $1.9 million operating shortfall cannot be done overnight. “Within the next two years,” Garrity said, “I expect that we’ll be able to substantially close that gap so that we can consider ourselves an operation that is financially solvent.”