Carolinas HealthCare System's Cutbacks Reach The Executive Suite
Carolinas HealthCare System is eliminating its number two executive's job as part of cost-cutting measures. The Charlotte-based system announced Tuesday that Chief Operating Officer Joe Piemont will lose his job at the end of May.
In September, Carolinas HealthCare announced it would reduce annual expenses by about $110 million this year. That's even though last year was another profitable one for the system, which is one of the largest doctor-and-hospital chains in the country.
Its leaders say the cutbacks are necessary in part because North and South Carolina have not expanded Medicaid, which would've resulted in hospitals getting paid for more of the care they provide. They also point out the North Carolina legislature keeps cutting hospitals' reimbursement rates.
Eliminating the role of Chief Operating Officer is the system's latest change related to cost cutting. Joe Piemont has worked for Carolinas HealthCare for 18 years. In a statement, the system's leaders praised him for his contributions.