The Seton Healthcare Family has told employees that it intends to make a $350 million shift in resources – cutting some services and expanding others – over the next four years because its hospitals are seeing fewer patients and its revenue predictions were off.
Jesús Garza, who officially becomes Seton’s president and CEO on July 1, says in a March 28 memo to employees obtained by the Statesman that patient volumes this year haven’t met projections, and “we did not ‘flex down’ expenses quickly enough” to “avoid tough decisions.”
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Seton Healthcare Family
• Affiliated with Ascension Health, the nation’s largest Catholic and nonprofit health system.
• Operates 14 hospitals, either on its own or with partners, including a psychiatric hospital and a rehabilitation hospital.
• Runs three clinics for the poor and uninsured.
• Has 12,950 employees.
• Has an annual operating budget of $1.7 billion.
• Reported total revenue of $1.7 billion and total expenses of $1.5 billion, netting $228.3 million.*
*Based on most recent IRS report, 2010-2011