Healthcare corp. eyes workforce reduction

An emergency workforce reduction is being eyed by the Commonwealth Healthcare Corp. in the next two weeks in an effort to cut the agency’s personnel cost by at least $250,000 per pay period.

No less than healthcare corp. chief executive officer Juan N. Babauta and board chair Jack Torres confirmed this separately with Saipan Tribune yesterday.

The latter said he is expected to meet with the board this month to formalize the matter and work on the numbers that needs to be adjusted in the agency’s budget.

The corporation currently employs about 600 personnel on Saipan, Tinian, and Rota with only $5 million in seed capital.

Because of financial constraints, payroll and obligations to vendors as well as personnel allotments have been delayed numerous times.

Documents obtained by Saipan Tribune show that there are 599 total FTEs at the corporation comprised of the following: CEO’s office (12 FTEs); Commonwealth Health Center (389 FTEs); Tinian Health Center (58 FTEs); Rota Health Center (62); Community Guidance Center (31); and Division of Public Gealth (47 FTEs).

“This is not sustainable. We cannot keep everybody on the payroll without the needed money for their salaries,” said the board chairman, citing that based on his review, “there are too many political hires” within the organization.

Babauta, for his part, said the emergency workforce reduction is inevitable.

“You should not keep them in payroll. I rather get rid off somebody than to keep him/her and not pay them,” he said, adding that with “zero” budget actually coming in to the corporation, people should not be surprised if chaos is happening at the hospital wgich lacks medical supplies and equipment, suffers delayed payroll and allowances, and his behind allotments for personnel and others.

“It will be across the board so we won’t discriminate anybody,” assured Babauta on the impending workforce reduction.

Both Babauta and Torres cannot immediately say how many employees will be affected, saying the decision on who will be retained and let go will be determined by the respective directors and supervisors of divisions.

But the chairman hinted that most of those affected are from public health because the hospital remains the priority.

For every pay period, Torres revealed that target reduction is $250,000—from the present personnel cost biweekly of $800,000.

“The emergency workforce reduction may take place sooner than expected, or within the next two weeks. Since we got onboard, we know that we need to do the streamlining measures…and honestly, I am getting frustrated because of the slow pace [of the process]. But I also understand that we need to make sure that everything is in place and in accordance with our policy,” the chairman told Saipan Tribune.

Last Feb. 14, a new employment manual was issued to corporation employees where it highlighted, among others, the policy on emergency workforce and furlough including termination without cause. This new employment manual replaced the existing rules and exempt staff and employees of the corporation from the application of the Commonwealth Civil Service Act. Compared to the existing employment rules, the grievance, employment termination, and disciplinary and corrective actions rules, are largely new.

Based on the new CHC employment manual, the CEO can enforce a temporary reduction of employees as a result of lack of funding or lack of work. A furlough is an action placing an employee in non-duty and non-pay status because of lack of work or funds as determined by CEO or his designee and valid for 180 days. A furlough that exceeds 180 days shall be considered an emergency reduction in force and shall be accomplished using emergency reduction in force procedures as defined by the manual.