CHC reduction-in-force still on; targets half of staff

Although the staff reduction will take a little longer this time, corporation CEO Juan N. Babauta told Saipan Tribune that plans are still pretty much on the table and would be implemented once it is finalized by the corporation’s management and board of directors.

“The RIF is still on. It’s just taking it a little bit longer. The corporation is still unsustainable and we continue to look for areas in which we need to either cut, streamline, or reduce in order lower our expenditures,” he said, adding that the goal to cut-possibly by half-its personnel will remain until the corporation’s financial situation improves.

“Until we get to that reasonable level, that effort will continue,” he added.

When the corporation took over the operation of the former Department of Public Health in October 2011, 19 personnel were let go with the closure of the dental clinic and merger of the Community Guidance Center with the Commonwealth Health Center. This was followed by at least 24 employees from the Tinian and Rota health centers who were laid off for the same reasons-to streamline operation and reduce personnel costs.

Babauta said last week that the next target of the reduction-in-force is Saipan, and may be done at the organization’s administrative offices.

The department had about 600 employees when the corporation took over in October last year. Little by little, the figure went down as a result of the reduction-in-force, resignations, and retirement of hospital personnel.

In the nursing department, 17 have already tendered their resignations and more will follow suit by the end of the year.

Babauta described the continued survival of the Commonwealth Health Center as a “miracle,” in light of its very limited funds.

From a $34 million budget in previous fiscal years, the corporation started out with only a “budget” of $5 million as startup capital. This delayed the payroll, housing allowance, and allotments of personnel since then. This is on top of the millions of debt owed by CHC to its vendors.

“We don’t want to live like that forever.so we need to do something. The RIF target is really what we can afford in terms of revenue we generate and that’s roughly 50 percent of the cost of operation,” he said.

At present, Babauta said, the corporation is focusing its efforts on the new revenue management cycle to boost collection and revenue. The personnel, he said, are being trained to multitask such as cashiering, billing, coding, and filing.