Emergency layoffs being eyed

Due to budget constraints, the Commonwealth Healthcare Corp. may resort to an emergency reduction-in-force—employee layoffs—to ensure that it could effectively operate within the limits of its financial capability.

Chief executive officer Juan N. Babauta and corporation board members bared this in a meeting yesterday, where they also disclosed that they are now working on appropriate policies that will guide them in doing so.

Babauta said that since he came onboard on Oct. 24, he and his team have been gathering information from all sections, activities, and programs in order to look at areas that may either be reduced or eliminated due to the lack of budget.

The corporation has about 600 employees on three islands.

Without singling out any specific units or services, Babauta said that affected employees in those sections that will be reduced or terminated will be the first to know the corporation’s decision.

He said a strategic planning is now being developed to ensure the correct enforcement of the reduction-in-force.

Board member Roy Rios recommended the lateral transfer of potentially affected employees to other units, so long as they are qualified for the job. He cited as an example the hospital’s dental service, where employees can be transferred to other stations. It was earlier reported that dental service is among the areas being considered for elimination.

Rios also recommended a full assessment of those hospital units that have been “killing the corporation” by incurring large overtime costs.

The board’s legal counsel, James Kearney, assured that the corporation will make sure that personnel policies will guide the board in its implementation of any reduction-in-force and that any actions will be within the bounds of the law.

According to Babauta, if the corporation will only base its operation on the $5 million seed capital provided by the Legislature, this will mean a drastic reduction in the size of the corporation.

“If we are going to go with the $5 million budget we have now, we would have to lay off 50 percent of the people here in the corporation. Obviously, we’re not going to do that,” said Babauta, but pointed out the need to streamline operations.

Dr. Michael Deary, director for Medical Affairs, told Saipan Tribune yesterday that he will do everything he can to keep the number of clinicians and providers currently available at the hospital. He disclosed that there are 25 full-time doctors at CHC and it needs more.