To stave off layoffs, Beth Israel doctors agree to give $350K

Department heads also ask other staff to donate money

The heads of 13 medical departments at Beth Israel Deaconess Medical Center yesterday said they would collectively donate $350,000 to the Boston hospital in an effort to further reduce planned staff layoffs.

They are also calling on hundreds of other doctors affiliated with Beth Israel Deaconess to donate money as a way to save colleagues' jobs.

"We invite you to consider making as generous a contribution as possible," the department heads wrote in a letter yesterday to about 1,100 physicians on the Beth Israel Deaconess staff and in private practices that are affiliated with the hospital. The money "will support job preservation among the hospital staff in order that they can continue to provide great service to our patients."

Beth Israel Deaconess, one of the city's major academic medical centers, said this month it is facing a $20 million loss in the current fiscal year, and would be looking at cost-cutting measures including layoffs.

Following the announcement, Paul Levy, the hospital's chief executive, met with employees and solicited ideas to save money and preserve jobs. This week, he wrote on his blog that the meetings had resulted in enough cost savings to reduce the number of planned layoffs from 600 to 150.

To further reduce the number of layoffs, the department heads each contributed about $27,000 from their annual pay.

"This was a really easy decision," said Dr. Mary Ann Stevenson, chair of the Department of Radiation Oncology. "Most of us have been longtime campaigners for the hospital. There were lots of opportunities to leave over many bad years. Most of us feel really strongly about where we work."

"This is not chicken feed," she added. "It's completely voluntary, but we hope this will start a groundswell of support."

Dr. DeWayne Pursley, chair of the Department of Neonatology and acting chair of obstetrics and gynecology, said, "In my two departments, I'm quite confident that the great majority of physicians will participate. I don't know at what level. People have their own personal issues. Personally, I have three kids in college."

The financial troubles at Beth Israel Deaconess reflect those affecting hospitals around the country. Many have faced unexpected downturns in patient volume as people hit by the recession have put off elective surgery and other procedures that carry large copayments. Others are also without health insurance as a result of losing their jobs.

After two years of strong growth, inpatient volume at the hospital is down about 1 percent in the fiscal year that began Oct. 1. As part of cost savings, Levy cut his pay 10 percent, while other senior executives will see their pay reduced 5 percent. The hospital also will not pay bonuses this year.

"Our doctors have once again shown the affection they have for the hospital staff and have displayed a marvelous sense of community," said Levy. "This is a kind and generous act."

A final decision on the number of layoffs is expected next week.

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