Academic journal article Frontiers of Health Services Management

The Health One Downsizing Study

Academic journal article Frontiers of Health Services Management

The Health One Downsizing Study

Article excerpt

The Health One Corporation in Minneapolis, Minnesota, illustrates what may be possible when significant downsizing must occur. Health One-now Allina Health Systemwas one of the predominant health systems in the Minneapolis market, owning several hospitals including the Metropolitan Medical Center (MMC), a large urban hospital. In 1990, the system began planning for its next fiscal year when trend information projected that MMC would lose in excess of $14 million before financing costs.

Anticipating that the utilization of inpatient hospitalization would continue to decline and that the surplus of hospital bed capacity overall would continue to increase, the system made the painful decision to close the downtown hospital campus. Faced with the reduction of over 1,500 full-time employees, senior management decided to provide extensive support for the staff throughout the downsizing process. By assisting in new job placement and expanding a voluntary early retirement plan, the system adopted a goal of minimal disruption both to the lives of the staff and the overall operation of the system. …

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