Connecticut hospitals are among the latest to be squeezed by deep cutbacks in government funding, significant cost-saving initiatives by managed care organizations and new competition from for-profit surgical centers. Area hospitals hit hardest include Waterbury Hospital, Danbury Hospital, New Britain Hospital and Middlesex Hospital.
Hospital communicators there are charged with the tough task of telling employees the bad news -how these market conditions will lead to significant staff reductions and department reorganizations.
The key to delivering this sensitive employee news is timeliness and candor, according to the communicators HPRMN spoke with who are in the throes of massive downsizing and system-wide redesigns. Their advice includes:
- Informing employees about layoffs and staff redesigns before they read it in the news;
- Being frank about the industry's "cold hard facts" which, in this case, include managed care competition, fewer patient admissions and shorter hospital stays; and
- Highlighting the organization's community goals for patient satisfaction and financial objectives.
Danbury Hospital is reducing costs by implementing some dramatic departmental redesigns, says Linda Wiseman, director of marketing and community relations. Although Danbury hasn't had to lay off any employees, the hospital's internal communications strategy is focused on how the system-wide 18-month redesign will achieve increased patient satisfaction, quality of care and operating efficiency. "It was important to explain to employees that we are doing what is financially sound now before resorting to dramatic staff cutbacks," says Wiseman.
The changes have the greatest effect on human resources and administrative functions. The four-member communications department is becoming more fully integrated. The PR function, for instance, will include more marketing responsibilities like business development and product marketing, says Wiseman.
For New Britain Hospital, which is bracing for a $4.5 million decrease in Medicare reimbursement for 1999, the changes are more extreme. One-hundred twelve positions have been cut from its budget.
The cuts occurred at most department levels, directly affecting 31 jobs and causing nine layoffs, says Sally Malech, New Britain's director of public affairs. The four-person communications department was too lean to cut from, Malech says.
To deliver bad news like staff cuts, explain the changes and the rationale behind them while reaching employees with key corporate messages before the press does, says Malech. For New Britain, the most effective communication vehicles were internal newsletters, a management meeting and monthly updates by President Laurence Tanner.
At Waterbury Hospital, which announced 150 job cuts, employees were told how the hospital plans to strengthen its position in the market through expanding at-home healthcare services and outpatient care.
The new business ventures include partnerships with VNA Health at Home, a visiting nurse service based in Watertown, Conn., and St. Mary's Hospital in Waterbury, Conn., for a cancer center.
(New Britain Hospital, Sally Malech, 860/224-5470; Danbury Hospital, Linda Wiseman, 203/797-7000; Waterbury Hospital, Claire Hall, 203/573-6717)