UVM Health Network Eliminates Executive Roles
Leadership Restructuring at UVM Health Network
The largest hospital network in Vermont and northern New York is undergoing a significant transformation in its leadership structure. According to an internal communication from the network’s interim executive officer, Stephen Leffler, several senior leadership positions will be phased out by the end of the year. This decision comes amid ongoing challenges, including recent layoffs, the resignation of the former president and CEO, and increased scrutiny from hospital regulators regarding administrative costs.
Leffler, who currently serves as both the head of the health system and president of its largest hospital, outlined plans for a “leaner” organization in 2025. As part of this restructuring, key roles such as chief medical officer, chief operating officer, and chief of staff will be eliminated. Additionally, the network’s chief external relations officer has also resigned as part of the transition.
Changes in Reporting Structure
With these changes, hospital presidents at each location across Vermont and northern New York will now report directly to Leffler. Previously, hospital leadership reported to the UVMHN’s COO. This shift aims to streamline communication and decision-making processes within the network.
Leffler also announced the formation of a new network board composed of trustees from each facility. These individuals will have voting power and will be directly involved in the budget planning for each of the network’s hospitals. This move is intended to enhance transparency and collaboration among the various facilities.
Financial Implications
Earlier this year, the network laid off 68 staff roles and eliminated another 69 vacant positions from its shared services team. Combined with other reductions, these cuts were expected to save $180 million. While the exact financial impact of the senior-level cuts remains unclear, redacted filings from the Green Mountain Care Board indicate that each executive was paid between $400,000 to $1.3 million in 2023.
Despite the significant changes at the top, Leffler emphasized that these adjustments are crucial for the network’s survival. He stated that every healthcare partner, team, and shared service plays a vital role in the health system. “We are stronger because we work as one,” he wrote. “These changes are about better supporting you and the work you do as a care provider, so we can stay focused on what matters most: our patients, our people and our mission.”
Ongoing Communication
Leffler assured network staff that he will continue to communicate openly as the organization works through the restructuring process. This commitment to transparency is intended to foster trust and ensure that all stakeholders understand the rationale behind the changes.
Key Takeaways
- The UVM Health Network is phasing out several senior leadership positions as part of a strategy to create a more efficient organization.
- Hospital presidents will now report directly to the interim executive officer, streamlining the reporting structure.
- A new network board composed of trustees from each facility will have voting power and be involved in budget planning.
- Previous layoffs and position eliminations have already resulted in significant cost savings.
- Executive salaries range from $400,000 to $1.3 million annually, highlighting the potential financial impact of the current restructuring.
- Leffler emphasized the importance of maintaining focus on patient care and the mission of the health system.
As the network moves forward with these changes, the focus remains on ensuring the continued delivery of high-quality healthcare services to the communities it serves.
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