LHSC has announced at least 7 executives who were paid about $2.3M combined no longer work there, as it looks to cut spending.
By: Norman De Bono
The ongoing restructuring at London Health Sciences Centre — led by Windsor hospital CEO David Musyj — may slash about half the number of executives at the hospital, and that’s welcome relief for front-line workers who feared the impact of budget cuts.
In the last week, LHSC has announced at least seven executives who were paid a combined $2.3 million in 2023 no longer work there as it faces a $150-million deficit and looks to cut spending.
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Some staff feared front-line positions would share the pain, but that fear has eased with the reduction of senior brass and reports executive job cuts may not be done.
“They were so top heavy, they really needed to do this. They had managers managing managers,” said Corey LaRose, president of Local 468 for COPE, the union representing LHSC office workers.
“These are huge salaries and this is where cuts had to come from.”
An executive management chart from November 2023 shows more than 20 positions when Jackie Schleifer Taylor was chief executive.
However, a chart released this week to The Free Press shows just 10 positions will remain as interim chief executive Musyj works to keep his pledge to reduce executive payroll.
“We see this as a sign of good faith. They’re cutting their own and not front-line staff. It’s positive. It’s appreciated,” LaRose said.
In a statement sent to The Free Press, Musyj said changes to the executive team “reflect some of the difficult but necessary steps we are taking to set the right course for the future of the organization.”
To date, the announced cuts include:
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In the statement, Musyj said management organizational changes would take three to four months to complete.
“We are still in month three of these changes,” he said, suggesting more moves are in the works.
In a staff memo, Musyj said the hospital began a “benchmarking and organizational structural review” in June as part of its recovery plan.
“The first stage of the review is now complete and we have defined the leadership structure that will support LHSC into the future,” he said.
The memo includes a chart of the hospital’s new leadership structure with Musyj at the top and 10 vice-president positions below him. Musyj also is interim vice-president of facilities.
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Musyj said in his memo to staff he understands how “restructuring can raise questions and uncertainties. I assure you that these decisions were made with careful consideration of our financial recovery, long-term vision and commitment to our patients and the community we serve,” he said.
He also said Heather Lokko will take on a new role as corporate nursing and interprofessional research administrator for LHSC Research Institute as the hospital seeks to bolster its research.
Musyj said he would continue to review “operations alongside the new executive team” in the coming weeks as the hospital seeks a return to a balanced budget.
“We will collectively work to identify the additional leadership changes needed to support fiscal recovery and best practices across LHSC,” he said.
Musyj said he sought feedback from hospital staff, professional staff and physicians and its executive team in one-on-one interviews, focus groups and a management staff survey. The hospital also worked with consulting firm BIG Healthcare to assess the structure of its leadership team.
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In June, London Health Sciences Centre reported to its board of directors that its deficit will nearly double in one year, to $150 million by next spring from $78.1 million in March this year.
One of Canada’s largest acute-care teaching hospitals, LHSC operates three hospitals and has more than 15,000 staff.
Musyj voiced concern over budgeting practices at LHSC after he was appointed acting chief executive in June. LHSC requested his secondment from Windsor Regional Hospital, where he has been president and chief executive since December 2007.
Two years ago, the hospital received a “balanced budget waiver” from the province, giving it five years to balance its books. There was no plan in place on how to balance the budget prior to his taking the helm at LHSC in May, Musyj said.
Musyj, born and raised in Essex County, began his secondment at LHSC as acting-president and CEO on May 23, with the goal of addressing the London budget shortfall. He joined Windsor Regional Hospital in 2000 and became president and CEO in 2007.
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