When a health care company is facing the possibility of insolvency, it can’t just look to its existing employees to keep them on board, and it’s unlikely to try to get new ones.
Sutter Health is one of the world’s biggest employers of healthcare workers, and for good reason.
It’s one of Australia’s most successful companies, with a turnover of more than $2.5 billion.
But it also has to pay workers so much more than most other Australian employers, that it’s actually forced to slash its health care workforce by 20 per cent.
This is because, in the face of a growing number of high-profile workplace suicides, Sutter has decided to take a much bigger hit on its payroll than it would otherwise have.
But, like many Australian employers who have been hit hard by the spiralling costs of healthcare, it’s also trying to get as much of its workforce back on the job as quickly as possible.
That’s what happened last week when the company announced it would be closing its Sutter Carecare unit, which is responsible for administering its healthcare services.
The company had planned to make the closure permanent but had to wait until the end of April to announce it, because it had been waiting for the Government’s $500 million Health Services Amendment Act to go through.
The law, which passed last week, will make it mandatory for health care workers to get a minimum annual income of at least $75,000 and will also set out the maximum amount that workers can be paid on average, before any deductions, including those from superannuation.
And the company had hoped to make some savings by closing its Health Care Services unit.
But its CEO said it was still in the process of determining the best way to do that.
The cost of Sutter’s healthcare servicesThe company has been hit with a $2 billion write-off for the health care costs of its healthcare workforce.
The company is currently in the middle of negotiations with its former CEO about how to restructure the company.
A lot of that was in relation to its Healthcare Services division, which will now be managed by its former executive, David McInnes.
The move will have a significant impact on the way the company operates and its staff, as it will mean the retirement of around a quarter of its workers.
The total number of workers affected by the company’s decision is unknown.
Sutter is one part of the massive health care sector, with the largest number of health care providers in Australia, accounting for around 30 per cent of all healthcare jobs.
A spokesman for the Australian Industry Group said the company was looking at a number of options to restructuring the company, but that the most likely option was to sell off its Healthcare businesses.
“Our focus is on how we can maintain our business and its value and to manage costs as best we can,” he said.
Mr McInnsions recent departure as CEO came after two years as chief executive, when he had been chief operating officer, which meant he had oversight of the health service businesses.
“It was a big decision for David McNeil,” the spokesman said.
“He’s had a great career and it was a decision that he felt was best for the company and best for his family.”
He felt it was in the best interests of the company to leave that role.
There’s been some discussions around that, and he’s certainly looking at other opportunities.
“The Health Services division has a turnover in excess of $1.5 million, with about $400 million in annual revenue.
Healthcare workers can expect to see an average salary of about $80,000 per year, or $25,000 more than what it would normally be.
Most workers will still be paid more than they would normally, with employees in the Carer’s Carers category expected to receive a salary of at most $80 an hour, which would be less than half the average wage for the sector.
However, it is also expected that some healthcare workers will receive lower wages, meaning they will be able to take home less than their average annual salary.
One healthcare worker at the company said she would be paying about $20 an hour to continue working at the Carers level, while she will be working on average $30 an hour at the Health Services level.
She said she was hoping to continue at the highest pay level for Carers.
Workers with the lowest wages will be paid less than average, with some workers earning as little as $10 an hour.
Another healthcare worker said she hoped to keep her job at the top pay level, where she would earn about $25 an hour on average.
If that does not work out, she is looking to get more lucrative employment in the private sector, such as working in a hospital, where there is more demand for health workers.