UVM Health Network to Eliminate Executive Roles

Leadership Restructuring at UVM Health Network

The largest hospital network in Vermont and northern New York is undergoing a significant transformation. According to an internal communication from the network’s interim executive officer, Stephen Leffler, several positions within the senior leadership team will be phased out by the end of the year. This decision comes after a series of challenges, including numerous layoffs, the resignation of the former president and CEO, and increased scrutiny from hospital regulators demanding cost reductions.

Leffler, who is currently serving as both the head of the health system and president of its largest hospital, has outlined plans to create a “leaner” organization by eliminating multiple executive roles in 2025. These include the chief medical officer, chief operating officer, and chief of staff. Additionally, the network’s chief external relations officer is also resigning as part of this transition.

Changes in Reporting Structures

As part of the restructuring, hospital presidents at each location across Vermont and northern New York will now report directly to Leffler. Previously, these leaders reported to the UVMHN’s COO. This shift aims to streamline communication and decision-making processes within the network.

Leffler has also announced the establishment of a new network board composed of trustees from each facility. This board will have voting power and will be directly involved in the budget planning for each of the hospitals under the network.

Financial Implications and Cost Savings

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 annual savings from the senior-level cuts are not yet clear, redacted filings from the Green Mountain Care Board indicate that each executive earned between $400,000 and $1.3 million in 2023.

Despite the overhaul at the top, Leffler emphasized that these changes are crucial for the network’s survival. He stated, “Every health care partner, team and shared service in our health system plays a vital role, and we are stronger because we work as one. 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 and Future Steps

Leffler assured network staff that he will continue to communicate openly as the organization works through the restructuring process. This ongoing dialogue is intended to ensure that all stakeholders understand the rationale behind the changes and how they align with the network’s long-term goals.

Key Points of the Restructuring

• Leadership Changes: Several high-level executive positions will be eliminated, including the chief medical officer, chief operating officer, and chief of staff.
• Reporting Structure: Hospital presidents will now report directly to Leffler, streamlining the chain of command.
• New Board Formation: A network board made up of trustees from each facility will be established, giving them voting power and involvement in budget planning.
• Financial Impact: Previous layoffs and position eliminations have already resulted in significant cost savings, with further reductions expected from the senior-level cuts.
• Communication Plan: Leffler has committed to maintaining open lines of communication with staff throughout the restructuring process.

The changes at UVM Health Network reflect a broader trend in the healthcare industry, where organizations are increasingly focusing on efficiency and cost management. As the network moves forward, the success of these initiatives will depend on effective implementation and continued collaboration among all stakeholders.

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Krisna Dwi Wardhana

Lahir di Padang pada tahun 1991, saya telah tinggal di berbagai wilayah di Indonesia sejak TK hingga kuliah, termasuk Aceh, Palembang, dan Bogor. Saya meraih gelar Sarjana Sains dari FMIPA Universitas Indonesia. Saat ini, saya bekerja sebagai Pendidik di sebuah sekolah swasta di Bogor, Tutor privat sambil tetap fokus mengembangkan Bisakimia.

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