Patient Care and Family Services Positions Are Preserved
CHP Berkshires has implemented a series of cost-saving measures, including eight staff layoffs and restructuring of some other positions, to help address a financial deficit related to the expiration of pandemic-related financial support for community health centers.
No patient care or Family Services positions were impacted by these measures. Across its countywide healthcare network, CHP employs 280 employees and has an annual budget of approximately $35 million. The network serves about 30,000 residents in the Berkshire region with health care and family support services.
In addition to staff layoffs, CHP has implemented partial benefit rollbacks, which will be shared across all staff positions.
“Losing any of our dedicated colleagues at CHP is a loss for all of us,” said CEO Bethany Kieley. “By rolling back certain benefits related to time off and our 403(b)retirement matches across all remaining staff, we have been able to keep job layoffs as low as possible.”
Brian Drake, CHP board chair, said: “Our focus at CHP remains on the well-being of our patients and clients and on continuing to provide patient care and services without interruption. Our recent opening of Adams Family Dental and Family Services is evidence of this commitment, but we must also look to the overall long-term stability of our organization and the important work we do.”
Kieley said that in recent months CHP has evaluated multiple scenarios to minimize job losses, “but we are now at a critical point in our need to adjust to our post-pandemic financial position.”
Kieley added that the financial strain on CHP is not unlike challenges facing other federally qualified health centers, of which there are 1,400 in the U.S.
“CHP has consistently been a well-run and financially stable organization and I’m confident that our fiscal measures will bring us back on track. But for now we and other health centers like ours must adjust to the expiration of pandemic-related funds that allowed us to meet the ongoing needs of our community.”
Of CHP’s budget, public and private insurance reimbursements comprise around 80% of CHP’s operating revenue. CHP estimates a $4M funding gap that must be addressed by spending reductions and additional revenue generation.
Last month, CHP opened CHP Adams Family Dental and Family Services, a project of approximately $850,000. That expansion was funded with a grant from the federal Health Services Resources Administration and with private foundation grant funding. Revenue from services provided and ongoing grants will largely cover the cost of Adams operations.
During the Covid-19 pandemic, community health centers across the U.S. received federal funding totaling approximately $3.4 billion, to address pandemic related demand for care and services.