Lifespan, Rhode Island’s largest employer and hospital group, announced on Sept. 20 that it has laid off 20% of its executive force.
According to Ted Nesi of WPRI, who is also a contributor to “Rhode Island PBS Weekly,” the move was made just before the new fiscal year, which begins on Oct. 1.
John Fernandez, Lifespan’s president and CEO, said in a statement that the cuts made by the not-for-profit corporation will save an estimated $6 million during the upcoming fiscal year.
“Lifespan implemented a strategic restructure focused on creating a one-system, one-team approach, designed to reduce executive overhead and streamline operations,” Fernandez said “Starting from the top like this allows us to allocate more resources directly to patient care and support areas.”
Lifespan has not disclosed the exact number of executive employees have been laid off, The Providence Journal reported. WJAR reported that one of the executives let go was Newport Hospital President Crista Durand. Lifespan has yet to release a list of executives who were laid off.
Lifespan is the owner of Rhode Island Hospital as well as Miriam, Newport and Bradley hospitals. According to WPRI, the organization is in the process of rebranding itself as “Brown University Health,” part of an expanded partnership with the university.
Lifespan and Brown’s Warren Alpert Medical School have been affiliated and share staff members who teach medical students and work at Lifespan’s hospitals, according to the Journal.
Lifespan is in the process of finalizing the purchase of two southeastern Masscahusetts hospitals: St. Anne’s in Fall River, and Morton in Taunton. The two facilities were owned by Steward Health Care, which filed for Chapter 11 bankruptcy on May 6, 2024.
The sale is expected to be finalized in October, WPRI reported. According to the Journal, the purchase price is $125 million.
