March 2000

Plans Announced to Consolidate National Office Sites

In a move that is expected to reduce expenses by $2.5 million or more per year, Catholic Health Initiatives has announced that it will close two national office sites and consolidate two others. "As a result of the hard work of many people throughout Catholic Health Initiatives, we have reduced national office spending by seven percent for fiscal year 2000. Even with this accomplishment, we must continue to reduce expenses across the organization," said Mike Fordyce, chief administrative officer for Catholic Health Initiatives.

After evaluating all national office locations, the Senior Management Leadership Team made the following decisions:

The Omaha, Neb., and Tacoma, Wash., offices will close by December 31, 2000.

The Cincinnati, Ohio, and Louisville, Ky., offices will be consolidated into a new national office site to be located in Northern Kentucky. The new office site will be selected by May 31, and the consolidation will be completed within the next 12 months.

The Philadelphia, Pa., office will remain open but will no longer serve as a national office. "Due to the unique geographic clustering and level of integration that exists among the market-based organizations in the east, we are evaluating an alternative organizational structure," said Fordyce. Details about the new structure of the Philadelphia office and an implementation schedule will be available by June 30.

The Minneapolis, Minn., office will remain open for at least the next two years while long-term plans for the office are evaluated.

The Denver, Colo., office will expand to accommodate relocated national office staff and functions.

No changes will be made in service center locations at this time.

"Although these decisions are crucial to the continuation of our health care ministry, they will present hardships for many Catholic Health Initiatives staff members," Fordyce said. "Consistent with our core values as an organization, we will provide support to the affected staff members throughout this difficult time, and we appreciate their courage, patience and understanding."

National office staff members will be kept informed of developments through bi-weekly status reports.