Seton cuts hiring plans by 400 jobs

The Seton Family of Hospitals has slowed growth plans for fiscal year 2009 -- trimming its plan for 800 new jobs to 400, in order to deal with rocky economic times, according to a letter attributed to Seton CEO Charles Barnett.

The letter also says that the entire organization will need to look at cutbacks in growth for the next year. Barnett further mentions that two planned executive positions budgeted in 2009 - vice president of safety and vice president for organizational development - will be eliminated. Barnett writes that the system has also already made some reductions in overtime and premium pay.

Seton's fiscal year 2009 begins July 1 this year.

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Greg Hartman, a senior vice president for the Seton Family of Hospitals, confirmed that Barnett did write the letter and send it to Seton employees on Friday.

Hartman says a majority of the 400 jobs eliminated from the 2009 plans are non-clinical positions.

With Seton's new Seton Center Hays under construction, for instance, Hartman says the system had planned to add a marketing position for Hays County. That position is one that will not be added in 2009.

"Whether it's because of the economy, poor public policy or other reasons, Seton is feeling the impact of rapidly increasing numbers of uninsured and underinsured individuals who seek care at our facilities," the letter says. "Already in Central Texas, the Seton Family of Hospitals provides about two thirds of all charity care provided in hospitals. As more people lose their jobs and their insurance, increasing numbers will comes through our doors needing care, but without the means to pay fully for our services."

The letter also says Seton will work to identify areas that afford the system opportunities to reorganize, which could result in existing positions being changed or eliminated. Hartman says if are positions eliminated, the system will try to find new jobs for those employees within Seton.

In the letter, Barnett outlines initiatives Seton has taken to prepare for the next fiscal year, including the overtime pay reductions and efforts to increase revenue.

Hartman says the planned revenue increase will likely come from new procedures, like high-end surgeries, and new services that the system is considering adding in some of its hospitals and facilities.

Barnett's letter mentions a future health care landscape that poses some big questions for providers.

"Our nation's next president and congress, as well as potential changes to Medicare/Medicaid reimbursement, represent significant unknowns that could have a tremendous impact on Seton, not to mention the health care environment as a whole."