75 job cuts as Temple 'transforms' Jeanes Hospital

Temple University Health System said Tuesday it plans to "transform" money-losing Jeanes Hospital into a smaller, primarily private-room, community hospital that will focus on a select group of key service lines.

The changes will result in the elimination of 75 full- and part-time employees at the Northeast Philadelphia medical center, which employs a staff of 1,046 workers.

Jeanes Hospital, like many medical centers in the region, is struggling with declining admissions and an increase in patients being categorized by the government and private payers as “observation status,” which carries lower reimbursement payments. Observation status refers to a classification for patients who spend up to 48 hours in a hospital before their condition is determined to merit their being released or admitted.

In fiscal 2013, Jeanes posted an operating loss of $12.5 million. It is projected to lose $14 million this year.

“Obviously losses like that can not be sustained,” said Temple health system spokeswoman Rebecca Harmon.

Harmon said Temple’s plan is to develop and strengthen key clinical programs at Jeanes in areas including cardiovascular services, ENT services, neurology and neurosurgery, orthopedic surgery, and general and bariatric surgery.

In addition, Temple plans to spend about $150,000 on aesthetic improvements at Jeanes, and an undisclosed amount to expand the health system's bone marrow transplant program at the hospital by adding an outpatient-services unit.

Jeanes is currently licensed for 176 beds. Once the renovations are completed, the hospital expects to have 112 beds in operation for patients who are admitted and on observation status.

The new Jeanes Hospital is the culmination of a strategic-planning process that began more than 18 months ago, intended to preserve the vital role of the hospital in its community while achieving new operational efficiencies and a greater integration with other Temple University Health System providers, particularly neighboring Fox Chase Cancer Center,” Harmon said.

With the changes, Temple is hopeful Jeanes will return to profitability in fiscal 2015.

Employees affected by the job cuts will receive consideration for open positions elsewhere in the Temple health system and job placement assistance.

Source: Philadelphia Business Journal