LHSC cuts another five executives as it targets $150M deficit

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Five more senior administrators have exited London Health Sciences Centre as the hospital continues to slash its top brass amid a looming $150-million budget deficit.

In a  statement sent to The Free Press on Monday, interim president and chief executive David Musyj said changes to the executive team “reflect some of the difficult but necessary steps we are taking to set the right course for the future of the organization.”

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According to a memo sent to staff Monday, obtained by The Free Press, the layoffs leave only 10 senior administrators at LHSC, including Musyj.

The high-level job cuts come days after the hospital announced the departure of two executives, including one who oversaw the presidents of University Hospital, Children’s Hospital and Victoria Hospital.

The salaries of the five departing senior staff add up to almost $1.7 million, according to Ontario’s sunshine list that posts compensation of taxpayer-paid staff earning more than $100,000 annually.

In the statement, Musyj said management organizational changes would take three to four months to complete.

“We are still in month three of these changes,” he said, hinting more are in the works.

In the staff memo, Musyj said the hospital began a “benchmarking and organizational structural review” in June as part of its recovery plan.

“The first stage of the review is now complete and we have defined the leadership structure that will support LHSC into the future,” he said.

The memo includes a chart of the hospital’s new leadership structure with Musyj at the top and 10 vice-president positions below him. Musyj is the interim vice-president of facilities.

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When Musjy, the chief executive at Windsor Regional Hospital, was appointed interim chief executive at LHSC in May, the hospital had 22 senior executives, including presidents for each of its three campuses.

Musyj said in his memo to staff that he understands how “restructuring can raise questions and uncertainties.

“I assure you that these decisions were made with careful consideration of our financial recovery, long-term vision and commitment to our patients and the community we serve,” he said.

Musyj also said he would continue to review “operations alongside the new executive team,” in the coming weeks as the hospital seeks a return to a balanced budget.

“We will collectively work to identify the additional leadership changes needed to support fiscal recovery and best practices across LHSC,” he said.

He also said Heather Lokko will take on a new role as corporate nursing and interprofessional research administrator for LHSC Research Institute as the hospital seeks to bolster its research.

Last week, Musyj announced the departure of Brad Campbell, corporate hospital administration executive, and Sandra Smith, who was regional vice-president for the southwest regional cancer program at LHSC.

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Campbell was paid $475,400 in 2023, a significant raise over the $217,000 he made in 2022.

Smith was paid $244,250 in 2023, according to the Ontario sunshine list.

Musyj said LHSC sought feedback from its staff, professional staff and physicians and its executive team in one-on-one interviews, focus groups and a management staff survey.

The hospital also worked with BIG Healthcare to assess the structure of its leadership team, he said.

“This assessment also included evaluating roles within leadership to include our structure is aligned to support our leadership goals,” he said in his memo.

In June, London Health Sciences Centre reported to its board of directors that its deficit will nearly double in one year, to $150 million by next spring from $78.1 million in March this year.

One of Canada’s largest acute-care teaching hospitals, LHSC operates three hospitals and has more than 15,000 staff.

Musyj voiced concern over budgeting practice at LHSC. Two years ago, the hospital received a “balanced budget waiver” from the province giving it five years to balance its budget. There was no plan in place on how to balance the budget prior to his taking the helm at LHSC in May, he said.

“We are in Year 2 of that. So, we have to develop a plan, that is why I was brought in. There is no plan,” he said. “It is one of my concerns.”

Musyj said he has met with more than 50 people in health care in London to gauge feedback and has heard a consistent message about LHSC’s “organizational structure” being top heavy.

hrivers@postmedia.com

@HeatheratLFP

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