Healthcare district downsizes, to outsource financial tasks
CALIFORNIA, UNITED STATES — The Tehachapi Valley Healthcare District (TVHD) is undergoing significant downsizing, reducing its employee count from about 200 in 2016 to just one worker after August 3.
This decision follows the board of directors’ vote to eliminate the business manager position, a move recommended by Chief Executive Officer Peggy Mendiburu.
Board’s decision and future focus
The board’s decision was supported by President Mike Nixon, Vice President Lydia Chaney, and directors Christine Sherrill and BreAnne Patterson, with Director Carl Gehricke abstaining.
Since affiliating with Adventist Health in 2016, the district’s primary responsibility has been managing bonds used to build a new hospital, which opened in November 2018. However, the board is now exploring additional ways to enhance the quality of life and healthcare services in the community.
“As a district, our primary responsibility is to act in the best interests of the community,” Mendiburu stated in a memo to the board.
Financial efficiency through outsourcing
Mendiburu highlighted that outsourcing financial record-keeping and payroll would save the district approximately $65,000 annually. The district currently spends around $85,000 on salary and benefits for the business manager role.
By converting to QuickBooks, the finance operations now require only about 10 hours per week, making the outsourcing solution more cost-effective. The estimated cost of outsourcing these tasks is between $20,000 and $25,000 per year.
Transition plan
The business manager position will be officially eliminated on August 3, and the incumbent will receive a six-month severance package. This restructuring is part of a broader effort to streamline operations and focus resources more effectively.
Subcommittee reorganization
In response to recent changes in board membership, the district also reorganized its subcommittees. Directors Nixon and Patterson will now serve on the Finance Committee, while Directors Sherrill and Chaney will take roles on the Strategic Planning Committee and the Community Outreach Committee.
The TVHD’s strategic shift towards outsourcing is expected to enhance operational efficiency, allowing the district to serve the Tehachapi community better while managing its financial resources more prudently.
