St John of God Health Care will cut 200 positions and make 160 workers redundant after grappling with higher operating costs, following a review triggered by its chief executive.
St John of God Health Care will cut 200 positions and make 160 workers redundant after grappling with higher operating costs, following a review triggered by its chief executive.
In a statement, group chief executive Bryan Pyne said around 200 positions, impacting about 160 staff, will be axed as a part of a cost saving measure identified in the review.
Some of the reductions are expected to be achieved through removing vacant roles, reducing caregiver hours and merging or removing roles, according to the health care provider.
Fewer than 10 patient-facing caregiver roles, such as nurses, would be impacted under the changes.
The not-for-profit said redundancies or voluntary reduction in hours may be offered and vacant positions have been placed on a recruitment freeze.
The changes are expected to impact about 1 per cent of St John of God Health Care’s workforce of 16,500 people.
It comes after Mr Pyne called for the major operational review in May just one month after being appointed to the top job.
At the time, St John of God Health Care signaled that job cuts were on the table.
In today's statement, Mr Pyne said the changes would not impact the delivery of their services, patient care, safety and quality.
“The safety of our patients, clients, and caregivers is critical and we will ensure that our impacted employees are fully supported through this process,” he said.
“It is difficult to make decisions that impact our dedicated workforce but St John of God Health Care, like other health providers, must navigate the significant challenges both during and post-COVID, including rising costs.
“We need to ensure this important organisation, which began in WA 125 years ago, remains sustainable in today’s environment.”
In its latest annual report, St John of God Health Care recorded a net deficit from continuing operations of almost $20.4 million for the year ending June 30 2022, compared to a $27.2 million operating surplus the previous corresponding period.
The total loss for the 2021-22 financial year was $6.5 million, due largely to a net gain on cash flow hedges of almost $22 million.
The year before it reported a $64 million net surplus.
The losses followed drop in operating income to almost $1.98 billion from just over $2 billion the year prior, earned from 17 hospitals across the country.
Mr Pyne said the operational review was aimed at reshaping the organisation to meet evolving health care needs.
“We will continue to explore ways to align our services and improve efficiencies while continuing to maintain patient and staff safety,” he said.
“We will continue to recruit clinical and specialist positions, such as theatre nurses and midwives, and to undertake thorough change impact assessments to ensure patient safety and the patient experience is unaltered.
“We have previously outlined that over a period of 12 months, we would conduct an organisation-wide review to reshape our organisation so it can meet the changing health care needs of our communities.”
