After Substantial Losses, Summa Health Looks to Make Cuts
With a projected loss of $60.0 million this year, Summa Health has shed roughly 300 jobs, half of which are open and half of which are currently occupied, in order to help balance its budget.
The move is expected to save the company $12.0 million, although that is still a good distance away from the $60.0 million in losses.
The company currently employs more than 9000, making this cut a smaller reduction, but potentially a primer for more ahead.
Summa Health is an important organization within the city of Akron, Ohio, with many relying on the clinic for both employment and services. The regular services offered by the clinic, however, are also going to see a reduction in order to recoup costs.
“A successful, independently-owned Summa Health is key to the ongoing economic and physical wellbeing of our city and the region,” said Mayor Dan Horrigan in statement following the announced cuts.
“Just as our community depends on the care and services Summa provides for its health and welfare; Summa cannot succeed without the support and trust of the community. I have pledged to continue to work with Dr. Deveny and the Summa leadership team to do everything necessary to ensure the organization remains a strong and independent pillar for years to come.”
Cliff Deveny, interim president and CEO, also sent an internal memo out to employees on Monday.
“Now, more than ever, we need your passion and spirit of collaboration because Summa Health’s future as Akron’s locally controlled adult hospital and the area’s largest employer depends on us working together toward unified goals,” he wrote.
The importance of the institution to the area touched many of Akron’s residents, as the clinic’s maintenance is a big contributor of both revenue and services. If costs cannot be managed, however, there will be potentially more rollbacks on the way, which could have a wide-ranging effect on Akron.
“Summa Health to eliminate jobs, services after projected $60 million loss,” News 5 Cleveland, June 26, 2017.