The nonprofit is changing up its management and administration positions, which could lead to some workers being laid off.
Yale New Haven Health is the latest health system to pursue restructuring with the aim of achieving greater efficiency.
The Connecticut-based hospital operator announced it will alter its management and administration roles as it works to "redefine and consolidate" its leadership team to "streamline decision-making and drive growth," a spokesperson for the organization said.
The changes will affect Yale New Haven Health's inpatient care and ambulatory operations, allowing it to be "nimble" in delivering care.
Though most impacted employees will have opportunities within the new structure, up to 38 people could be laid off in the process, according to the spokesperson for the health system, which operates five hospitals in Connecticut, New York and Rhode Island.
The health system also said in February that after three years of negotiations to close a deal with Prospect Medical Holdings for three Connecticut hospitals, the sale had become "impossible."
Prospect's alleged financial mismanagement derailed the $435 million transaction and is causing the bankrupt hospital operator to locate new buyers for the trio of facilities.
Meanwhile, Yale New Haven Health is joining several other health systems in restructuring, including Mass General Brigham and Providence.
Last month, Mass General Brigham announced it would conduct the largest layoffs in its history by cutting hundreds of management and administrative positions. The organization said it expects to save more than $200 million per year from the jobs cuts.
In the case of Providence, the Washington-based health system announced in January that it would restructure its executive team again under new CEO Erik Wexler. The streamlining included placing executive vice president Sara Vaezy in charge of AI strategy, digital health, innovation and sustainable partnerships.
As more health system grapple with the financial ramifications of rising expenses, trimming down leadership teams through restructuring can allow organizations to save on labor costs while realigning priorities.
Jay Asser is the CEO editor for HealthLeaders.
KEY TAKEAWAYS
Connecticut's Yale New Haven is restructuring inpatient and ambulatory operations and consolidating its leadership team.
Up to 38 workers may be laid off, while most impacted employees will be switched into new roles.
Multiple health systems have recently undergone restructuring to slim down and optimize their leadership.