Fairview Red Wing adjusts to meet changing health care world

Fairview Red Wing Health Services is preparing to undertake a number of personnel changes as it looks to keep pace with an evolving health care industry, according to President and CEO Scott Wordelman.

Some of the changes are exciting, Wordelman said, and others are somber.

In recent days and months the company has brought on 11 new providers. They will allow Fairview Red Wing to offer more patient services.

The health system also plans to cut eight management positions, which will result in the layoff of seven people. Wordelman said the adjustments are necessary to keep Fairview Red Wing ahead of the curve given the economy, national health care reform and other factors.

“There will be fundamental changes in both how we’re paid and how we’re going to provide care,” he said and added, “It’s ultimately about making sure we have an outstanding health care facility here and in order to do that we have to manage the economics.”

The slumped economy and a trend toward higher-deducible health care plans have deterred many people from seeking medical care.

More and more people are declining or delaying expensive tests and procedures and hospitals are being forced to adjust to stagnate or declining revenues.

At Fairview Red Wing total number of patients has held steady in recent years, he noted, while the number of inpatients is down slightly.

Wordelman said there is a need for Fairview Red Wing to reduce fixed costs. The company’s planned cutbacks to management will rein in expenses — more than $1 million annually — in a way that doesn’t have a direct impact on patients, Wordelman said.

The cuts will be tough both for the employees losing their jobs and those who will be charged with picking up the slack, Wordelman said. He said those most affected responded graciously.

“Some of these people were my VPs and I worked very closely with them and I hold them in high regard,” he said.

Meanwhile, in the health care industry there is also a growing emphasis on preventative care.

To help meet that demand Fairview Red Wing has added four physicians and seven mid-level providers. The organization also is looking to roll out several new programs in the coming year.

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