Cape hospital group to cut 169 positions

Measure will help trim costs by $16m

Cape Cod Healthcare yesterday said it will cut 169 jobs, or nearly 4 percent of its workforce, as part of a sweeping financial makeover intended to add as much as $40 million to the hospital system in the fiscal year starting Oct. 1.

Dr. Richard Salluzzo, the organization's new chief executive, said the plan includes cutting expenses by $16 million and raising between $15 million and $25 million in new revenues.

"As Cape Cod's largest employer, we understand the impact of our announcement today," said Salluzzo in a statement. "Obviously, this is the most painful part of our expense reduction plan. There is no one on our board, management team, or staff who likes to see reductions of this nature."

Cape Cod Healthcare has 4,500 full- and part-time employees. Salluzzo said the system would slash consulting and legal fees and improve patient coding. Since most treatments are designated by codes that are reimbursed at specific rates, using the right codes is crucial to maximizing revenue, he said.

"Our present financial performance is not sustainable," said Salluzzo.

Salluzzo said the hospital would work to ensure that patient care and safety are maintained at high levels during the financial restructuring. He said the organization, which includes Cape Cod Hospital in Hyannis and Falmouth Hospital, would join the Safest Hospital Alliance, a nonprofit he founded while at Wellmont Health System, a hospital chain in Tennessee. The New York group helps hospitals prevent medical errors and aims to cut healthcare costs while improving safety.

"We are all sharply focused on delivering the best care possible to our patients, and we are all working very hard to ensure that we continue to have a strong healthcare system on Cape Cod," said Robert Birmingham, chairman of Cape Cod Healthcare's board of trustees, in a statement.

Jeffrey Krasner can be reached at krasner@globe.com.