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32 32 CEO/STRATEGY Scripps Health to Shed Leadership, Administrative Jobs as Part of Reorganization Plan By Ayla Ellison S an Diego-based Scripps Health's cost-cutting plan will in- clude layoffs in 2018, according to e San Diego Tribune. In a memo to employees and affiliated physicians, Scripps President and CEO Chris Van Gorder said the cuts are necessary to remain competitive, as payers increasingly fo- cus on low prices in contract negotiations and patients with high-deductible health plans shop around for care. In a statement to Becker's Hospital Review, Mr. Van Gorder indicated layoffs would happen at an administrative and leadership level. He did not specify the number of employ- ees or roles that will be affected. "We are still hiring patient caregivers," he said. Mr. Van Gorder noted that major changes in healthcare deliv- ery are forcing health systems to adjust. "Healthcare is changing rapidly with huge growth in ambula- tory care and reduced utilization of inpatient hospitals — and given the elimination of the individual mandate under the Af- fordable Care Act, the uninsured will once again be growing nationally," he said. "It's important that healthcare organiza- tions proactively change to address these changes, and Scripps is doing so with a major restructuring of our organization to (1) reduce costs for our patients; (2) increase the quality of our services even though they are already strong, and; (3) improve our patient experience in both our hospitals and our many am- bulatory sites of care." With the aim of lowering costs by $30 million, Scripps is mak- ing several changes, including restructuring its leadership model and implementing corporate services reductions. e reorganization comes aer Scripps missed its annual budget by $20 million in 2016 for the first time in 15 years, according to e San Diego Tribune. "We've got to shi our organizational structures around to be able to deal with the new world of healthcare delivery, find ways of lowering our costs significantly," Mr. Van Gorder told e San Diego Tribune. "If we don't, we will not be able to compete." Although Scripps missed its budget in 2016, the system re- mains financially strong. Fueled by strong investment gains, Scripps' net income increased 25 percent year over year to $350 million in 2017, according to e San Diego Tribune. n Contact us today to get started! 888-416-2409 • bids@eSutures.com In only a few days, you can turn excess inventory into usable capital with our streamlined and simple process. For more information, or to begin the bid process, please call 888-416-2409 or email bids@eSutures.com. eSutures.com is interested in purchasing your in-date, short-dated and expired products in full selling units, open boxes and even individual, loose units. WE CAN PURCHASE: • Ethicon Suture • Ethicon Endosurgery • Covidien Suture • Covidien Endosurgery • Synthes • Arthrex • Bard • Gore • Masimo • Applied Medical and more! Sell Your Surgical Surplus to eSutures.com!