Niagara Health, St. Joe’s Hamilton to cut 160 jobs amid budget pressures

Two health systems in the Hamilton and Niagara regions are planning to eliminate jobs in an effort to save money amid budget “pressures,” CHCH News has learned.

An email sent to Niagara Health staff, obtained by CHCH News, says the hospital system intends to cut 88 unionized roles and 10 non-union positions after ending the latest fiscal year with a $26-million deficit.

No nurses will be laid off and 87 per cent of the reductions will come through vacancies and redeployments, the email notes.

“Niagara Health will endeavour to offer all impacted staff alternative jobs,” CEO Lynn Guerriero writes in the email. “These changes will result in more than $9 million in savings.”

The hospital system, which has more than 6,400 staff, says there will be no impacts to programs or services.

The email says patient needs are growing “in both volume and complexity” and that the organization must balance investments in new models of care, technology, and infrastructure with financial responsibility.

Niagara Health says it has already taken several steps to reduce its deficit, including reviewing contracts, improving sick time and overtime, reducing discretionary spending, and strengthening emergency department and inpatient performance.

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Meantime, St. Joseph’s Healthcare Hamilton will be eliminating 24 vacant positions and 38 non-vacant roles for a total of 62 job cuts.

The organization says the changes are part of a plan to secure $9.1 million in budget savings to offset a projected deficit.

“These are difficult but necessary decisions that ensure we are able to maintain our track record of high-quality, compassionate care while remaining financially responsible,” Lauren Stasila, communications manager at St. Joe’s, writes in an email.

The Hamilton health system says the savings will come from reductions to administrative and corporate support budgets, changes to the way care is delivered, and decreased energy and utility use due to environmental sustainability efforts.

The hospital has also identified another $2.3 million in revenue-generating initiatives.

Stasila says many affected staff are expected to remain employed through redeployment into existing vacancies, while others will be offered early retirement options.

The cuts will not reduce access to services or affect the quality of care, the email says.

There is no word yet on when the layoffs will happen.

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This is a developing news story. More to come.