Economic storm clouds are on the horizon for the newly combined Excela and Butler health systems in Pennsylvania, and a “significant expense reduction plan” is in the near future, according to an internal letter signed by President and CEO Ken DeFurio.
In the letter — sent to employees and medical staff at the Greensburg- and Butler-based health systems and acquired by the Tribune-Review newspaper — DeFurio cited ongoing financial pressures from the pandemic, staff shortages, inflation, cost increases, declines in reimbursement rates and the stock market as reasons for future cost-cutting measures.
DeFurio, who had led Butler Health, became the new organization’s leader in January,
“November, December and January were difficult months, and we anticipate similar numbers for February,” DeFurio said in the letter. “We must substantially reduce our operational costs.”
For the six-month period ending Dec. 31, Butler Health System reported an operating loss of more than $23 million, according to a continuing disclosure report.
At Excela, the same six months in 2022 saw an operating loss of more than $15 million. Read more.
