London hospital cuts 50+ managers to tame $150M deficit: Sources

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London Health Sciences Centre has finished its management restructuring and the cuts are deep and wide at the city’s largest hospital, sources tell The London Free Press.

Interim president David Musyj is expected to reveal details of the restructuring later on Thursday.

But sources say 59 managers have been cut and 71 demoted with a reduction in pay, a restructuring affecting about 14 per cent of the hospital’s management group.

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The cuts come as Musyj, brought in to tame LHSC’s looming 2025 $150-million deficit, undertook a review of its spending that included benchmarking against other institutions.

 “We have been clear about the ongoing management organizational structure review and benchmarking work that we have undertaken with the goal of identifying efficiencies and best practices that won’t compromise our ability to deliver high-quality care to patients and families,” Musyj said in a statement last month, when two senior executives were dismissed.

Musyj arrived in May, replacing Jackie Schleifer Taylor, who had been chief executive since 2021. 

Schleifer Taylor took a leave of absence in November, 2023, and the hospital announced June 11 she was no longer employed at LHSC. The board of directors announced her departure as the hospital wrestled with its rising deficit and dealt with the fallout of trips for senior executives and staff totalling more than $470,000.

Schleifer Taylor made $803,584 in salary and taxable benefits in 2023.

In June, the hospital reported its deficit will nearly double in one year, rocketing to $150 million by next spring from $78.1 million in March this year. Musyj said then the hospital was looking to cut costs and reduce spending with an eye on administration and senior executive ranks.

Musyj is on secondment from Windsor Regional Hospital, where he is chief executive. 

LHSC’s annual operational budget this year is $1.6 billion, up from about $1.5 billion the previous year.

ndebono@postmedia.com

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