Weak economy prompts Dean to cut 90 jobs
JANESVILLE — A desire for tighter efficiency in a weak economy is behind the elimination of about 90 jobs at the Madison-based Dean Health System.
The layoff—less than 2 percent of Dean's workforce of 4,500-plus—reaches into Rock County, where the health care provider plans to cut five jobs in the Janesville area.
Craig Samitt, Dean's president and chief executive officer, said the system had planned to downsize over time, but a tough economy punctuated by decreasing reimbursements and increasing costs accelerated the decision.
"Like many other organizations, Dean Health System is not immune from the economic storm swirling around us," Samitt said.
That storm forced Dean and partner SSM Health Care of Wisconsin to announce in February that they would delay construction of a $140 million hospital and medical office complex on Janesville east side.
At the time, officials from both organizations cited unfavorable credit markets in pushing the opening of the new campus from the end of 2010 to the end of 2011.
SSM and Dean announced plans for the $80 million hospital and $60 million physician office complex near the intersection of Interstate 90/39 and Highway 11 a year ago. When complete, the project is expected to provide 344 direct and 155 indirect jobs and have a $164 million annual economic impact.
Samitt said Wednesday that Dean and SSM remain committed to the Janesville project.
"We're full steam ahead with our design plans and are just waiting for the credit markets to ease so we can move forward and sign the construction contracts," Samitt said. "We're very much committed to Janesville."
Those affected by Wednesday's announcement will be offered a severance based on length of service, as well as outplacement support. Dean is recruiting for other open positions, and laid-off employees will be able to apply.
"The staff members leaving have provided us with fine service," Samitt said. "For obvious reasons, these decisions were very difficult to make. We're taking these actions not because we're in poor financial health but to prepare us well for the future."
Apr 10, 2009 at 9:33 a.m.
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OK - so when does the Dean bashing start? I'm sorry, I forgot that we are talking Dean here and not Mercy. If this were a Mercy story it would be front page and all the usual dredges of the blabber boards would be out here smashing Mercy.
Mr. Bea this (nah nah nah), Mr. Bea that (nah, nah, nah), Mercy did this (nah, nah, nah) Mercy did that (nah, nah, nah).
Why don't those of you just come clean and stop trying to make an argument about Mercy. Just simply say you hate them. That's all.
But all hail Dean!!!!!
Apr 9, 2009 at 8:20 p.m.
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this isn't meant to be a tear down to build up. it's just the reality of it, serdan.
Apr 9, 2009 at 4:49 p.m.
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Do we HAVE to bring up the class warfare argument with every job cut news story we see?
You won't build up the have nots by tearing down the have's!
Apr 9, 2009 at 3:06 p.m.
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I will bet you if the top Dean wage earners took a 10% pay cut, it would have covered the 90 salaries of the people getting cut....
Apr 9, 2009 at 10:51 a.m.
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Because we know the top dogs are overpaid and underworked. The price tag from government funding is minimal, so that is why everyone else with private insurance is charged up the ying-yang. The entire health insurance program needs revamped, but how to you provide for so many people and make premiums decline? There is a way for America, but we all need to be open to the changes.
Apr 9, 2009 at 10:10 a.m.
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Sorry, this doesn't wash. Healthcare is a growing industry, and in fact, takes up an increasingly large segment of expenditure in the US and Wisc. Is the matter of their profits public knowledge? How much did their CEO and other officers get last year? How much govt. money did they get? I certainly wonder whether the fat cats in these businesses will be taking a cut so that for once it isn't just the little guy (and the community) that has to suffer.
Apr 9, 2009 at 9:57 a.m.
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Medical care remains a growing industry but certainly elective procedures will be among the things consumers cut back or delay, and those tend to be more profitable. And with credit limitations investment just becomes untenable. But then this all represents a further contraction of the economy as former Dean employees don't have money to spend and the organization itself dials back its own spending. How we're going to get out of this hole remains a mystery.
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