By Anne Gelhaus
As expected, the sale of the Good Samaritan Health System to Columbia/HCA Healthcare Corp. this month resulted in more than 300 layoffs, but the affected jobs don't involve patient care.
Announced last October, the sale of the nonprofit health system became final Jan. 4. Proceeds from the $165 million sale, expected to total $56 million, will be used to establish a charitable trust to continue Good Samaritan's community service work.
The health system includes three hospitals and numerous medical centers, such as Mission Oaks on Los Gatos Boulevard, which provides cancer-care services. Good Samaritan spokeswoman Judy Twitchell said the 342 impending layoffs won't affect patient care at these facilities but will be in administrative areas. She says the employees dismissed will receive job-placement counseling and severance pay.
These layoffs were expected since Thomas May, Good Samaritan's president and chief executive officer, said last month that about 300 jobs would have to be cut to help put the health system back on more solid financial footing. Good Samaritan lost $25 million between July 1994 and March 1995.
Twitchell said the layoffs will occur in the next two months, adding that more administrative jobs might be cut within the next year as staffing needs are assessed at each healthcare facility. May later said that the next round of layoffs could include nurses.
With the sale finalized, Columbia/HCA named Darrel Neuenschwander as Good Samaritan's new chief operating and financial officer. Previously, Neuenschwander held a similar position with Unihealth, a healthcare system in Burbank. He will oversee all hospital and financial operations at Good Samaritan.
This article appeared in the Los Gatos Weekly-Times, January 17, 1996.
©1996 Metro Publishing, Inc. All rights reserved