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."