Becker's Hospital Review

18 CFO / FINANCE BHSH System cuts 400 positions amid financial pressures By Kelly Gooch B HSH System has cut about 400 management and nonpatient/ health plan member-facing roles from its 64,000-member workforce. e 22-hospital organization — formed by the February merger of Grand Rapids, Mich.-based Spectrum Health with Southfield, Mich.- based Beaumont Health — announced the cuts in a statement shared with Becker's, citing financial pressures. "Spectrum Health and Beaumont Health came together as a new health system for Michigan to build a future where health is sim- ple, affordable, equitable and exceptional," the statement reads. "Our health system, like others around the nation, is facing significant fi- nancial pressures from historic inflation, rising pharmaceutical and labor costs, COVID 19, expiration of CARES Act funding and reim- bursement not proportional with expenses." BHSH System also said the February merger places the organization in a stronger position to face these pressures, while ensuring quality care for the future. "Since the beginning of the year, we have recruited around 10,000 people, predominately into open roles directly serving our patients and health plan members," the system's statement said. "We have also made the difficult decision to eliminate about 400 management and nonpatient/health plan member-facing roles from our 64,000 team members. We are grateful for the contributions and years of dedicated service provided by our impacted team members and are working to help them find employment within our health system and elsewhere. We remain deeply committed to caring for our team members and our community." In August, MiBiz reported that BHSH System, across all business units, recorded $63.5 million in net operating income for the first half of 2022 on $6.58 billion in total operating revenue, in addition to in- vestment losses. Hospitals across the U.S. are facing financial struggles. On Aug. 29, Kaufman Hall released a new report that showed hospitals are ex- periencing some of the worst margins since the beginning of the COVID-19 pandemic. n Clinic chain files for bankruptcy as payment cutoff nears By Ayla Ellison B orrego Community Health Foundation announced Sept. 12 that it has filed for Chapter 11 bankruptcy, but it will keep its clinics open. The Borrego Springs, Calif.-based organization said the bankruptcy filing was driven by a notification from California Health and Human Services that payments for Borrego Health Medi-Cal services will be suspended Sept. 29. Borrego said the bankruptcy filing will prevent the payment suspension from taking effect. Borrego will also work to resolve ongoing state and federal investigations during the bankruptcy process, the organization said. "Unfortunately, the misguided action by [Department of Health Care Services] jeopardizes patients and has led us to make a difficut decision to protect our patients and their access to care," Borrego Health CEO Rose MacIsaac said in a Sept. 12 news release. "Our mission to provide high-quality local access to those most in need drives us forward and this filing with the court will allow us to continue to provide care as we do today while we secure the future of healthcare for our patients." Borrego Health has 21 locations and served more than 120,000 patients in 2021. The organization provides a variety of services, including primary, pediatric, behavioral and urgent care. n CFOs' seconds-in- command seeing greater pay, visibility By Alexis Kayser A s the CFO role becomes increasingly operational, deputy-level finance executives are taking on larger leadership roles in their departments — and their compensation is reflecting it, The Wall Street Journal reported Sept. 5. The spotlighted seconds-in-command include treasurers, heads of accounting, controllers and vice presidents of finance, according to the Journal. The tighter labor market, alongside an increase in one- time cash or stock awards and annual cash bonus payouts, have swung many of their incomes upward. For example, median cash bonuses for corporate treasurers increased 23 percent in the most recent fiscal year from the previous year. Total compensation for the role rose 6 percent during that period, the Journal said. Vice presidents of accounting saw a 12 percent increase in their median pay, while accountants received a 31 percent higher median annual bonus in 2021 than in 2020. Some companies are offering salaries 20 percent higher than what previous executives earned, Cathy Logue, head of the CFO and financial executives practice at recruiting firm Stanton Chase, told the Journal. n

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