LHSC cuts administrative levels, warns that cost-cutting has not been done

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After cutting $14 million in administrative salaries, LHSC interim president David Musyj warned Thursday that the cuts are not over and could extend to other programs, services and staff.

The London-based Health Sciences Center has announced it has “made redundant” 59 managers and made 71 others redundant with pay cuts, frozen pay increases and will continue to look for ways to cut costs as it faces deficits. of $150-million in its 2024-25 fiscal year.

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Musyj estimated $11 million in salary savings from the layoffs and $3 million from executives whose pay was cut.

“This is difficult; it’s not easy for anyone,” Musyj said in a press conference in the LHSC boardroom. “There are people here at the end of the day who are affected and it’s very bad. It’s not a good feeling. There were many sleepless nights.”

The cuts represent 14 percent of executives and 31 percent of executives across the organization, he said.

“We are reviewing everything, program by program and we will look at the services we provide and can we be more effective,” said Musyj.

But any program cuts and additional staff reductions will be done while working with Ontario Health and the Ministry of Health, he said.

“How can we provide equal care, with the same number of people, of higher quality but do it more efficiently? It’s looking at that; could it result in (further reductions in staffing)? It could. ”

The cuts come after LHSC hired a consulting firm to advise on its management structure and conduct benchmarking to compare LHSC to other hospitals, Musyj said.

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The goal was to “provide the best quality of care and be as efficient as possible,” he said.

Musyj emphasized that the new structure of the organization will not be easily changed by any future administrator because it will require approval from the hospital board and medical leadership.

The administrative review is ongoing for approximately 90 days.

He said: “This made us aware of several areas where change was needed. Musyj said he believes the new structure will provide “clarity” and “a better position to deal with the challenges we face.” He called the new model “a smaller, more stable team” that will help return LHSC to a balanced budget.

“We have to make these changes, they have to be made and now we can start with how we move forward.”

In addition to the high profile, LHSC was attacked by critics for severing long-standing ties with St. Joseph’s Health Care saw it integrate programs and services, an example of cost savings and efficiency.

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Musyj said that he is in constant communication with the manager of St. Joseph Roy Butler about restoring that relationship.

“Relationship building is very important and the relationship between LHSC and St. Joe’s is a model for the entire province. Now we have ongoing discussions about cooperation and working together. ”

The review and restructuring will not extend to the LHSC board of directors, which has also been criticized for allowing spending to be cut.

LHSC has about two and a half years left to put together a balanced budget plan, which is called a “renewal plan” and restructuring the system was the first step, Musyj said.

Musyj has been at LHSC since May. She replaced Jackie Schleifer Taylor, who has been CEO since 2021. Schleifer Taylor went on medical leave in November 2023, and the hospital announced June 11 that she no longer works at LHSC. The board of directors announced his departure as the hospital grapples with a growing deficit and deals with the fallout from the hospital’s plan to spend more than $470,000 on executive and executive travel.

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Schleifer Taylor made $803,584 in taxable earnings and benefits in 2023.

In June, the hospital reported its deficit would nearly double in one year, to $150 million next year from $78.1 million in its 2023-24 fiscal year that ended in March 31st.

In mid-August, LHSC announced the departure of two executives: Brad Campbell, director of the federal hospital system that was $475,423 in 2023, and Sandra Smith, the district’s vice president for the cancer program and at Southwest LHSC, who was paid $244,249 in 2023.

A few days later, the LHSC said five more officers had left. The hospital shared a chart of its new leadership structure showing Musyj at the top and 10 vice president ranks below him. Musyj is the interim vice president of services.

When Musjy was named interim CEO at LHSC in May, the hospital had 22 senior executives, including presidents for each of the companies. of its three.

Musyj said at the time the hospital wanted to reduce costs and reduce spending under the supervision of management and senior management.

He has been suspended from Windsor Regional Hospital, where he is the chief executive.

The operating budget of the London Health Sciences Center this year is $1.6 billion, up from $1.5 billion last year. One of Canada’s largest acute teaching hospitals, LHSC has three hospitals and more than 15,000 employees.

ndebono@postmedia.com

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