Doylestown Health Employees: How to Plan Financially When Job Stability Is in Question

The merger of Doylestown Hospital with Penn Medicine has generated excitement for the hospital’s future and opportunities for expanded services. But for employees, major organizational changes can also bring uncertainty, particularly about job stability, changes in benefits, and what these shifts mean for the people who depend on you.

Even if the leadership expects, and has communicated that, staffing levels will remain steady in the near term, mergers often involve a period of adjustment. Departments may be restructured, roles may evolve, and new performance expectations may emerge. In these moments, the question is not just “Will my job change?” but “Is my family protected if it does?”

This blog will help you develop a clear, proactive plan to protect your financial security and safeguard your family’s well-being during times of transition.

Why Financial Security Is More Than Just a Steady Paycheck

For many people, job stability is the foundation of financial stability. When that’s called into question, even slightly, it’s natural to feel uneasy. But true financial security comes from more than just regular income. It’s built on a combination of savings, insurance protection, and flexibility that allows you to adapt if circumstances change.

A merger like the Penn-Doylestown integration can be an opportunity to assess the strength of that foundation. Ask yourself:

• Could I comfortably cover my family’s expenses for several months without a paycheck?
• If my benefits changed tomorrow, would I still have adequate health, life, and disability coverage?
• Have I planned for both short-term needs and long-term goals, no matter what happens at work?

If the answer to any of these questions is “I’m not sure,” this is the time to create a plan.

Building a Strong Emergency Fund

One of the most important steps you can take during a period of uncertainty is to build or reinforce your emergency fund. This is the cash reserve that covers your essential expenses in case of job loss, reduced hours, or other unexpected changes.

At Rockwood, we often recommend three to six months of living expenses as a baseline, but in industries undergoing transition, aiming for closer to nine months provides additional peace of mind.

Building this fund doesn’t happen overnight, and that’s okay. Even small, consistent contributions can add up quickly. The key is to keep these funds liquid and accessible in a savings account or money market fund, so you can reach them without penalties or delays.

Reviewing Your Insurance Protection

If your job were to change, would your family still be protected financially? During a merger, it’s especially important to review your insurance coverage:

Life Insurance

Many employees rely on group life insurance provided by their employer. While Penn Medicine will likely offer group coverage, the amount and terms may differ from Doylestown’s current plan. Group coverage often ends when you leave a job, so it’s wise to consider whether supplemental individual coverage is needed. This ensures your family’s financial security doesn’t depend on your employment status.

Disability Insurance

This is an especially critical area during the Doylestown-to-Penn transition. Disability insurance replaces a portion of your income if you can’t work due to illness or injury.

• Coverage differences: Doylestown’s long-term disability benefit capped at 60% of salary up to $6,000/month. Penn’s plan is more generous, offering 60% of salary up to $15,000/month. For higher earners, this could mean much stronger income replacement if something happens.
• Action steps:
• If you currently carry expensive private disability policies, the increased Penn coverage may allow you to reduce or drop them, saving premiums.
• If you still need additional coverage beyond Penn’s limits, apply early before transition deadlines close. Eligibility can tighten over time.
• Make disability planning part of your broader family protection strategy, ensuring it integrates with savings and life insurance.

Health Insurance

If your job is eliminated, you’ll need a plan to maintain health coverage. COBRA allows you to keep your employer’s plan for a period of time, but at full cost to you. Alternatively, you may choose coverage through a spouse’s employer or a marketplace plan. Knowing your options and their costs before you need them can reduce stress during a transition.

Managing Debt During Uncertainty

When job security feels uncertain, debt can become a heavier burden. High-interest debt, such as credit cards, can quickly erode savings if income is interrupted. Consider paying down variable-rate debt more aggressively while maintaining minimum payments on lower-rate loans.

The goal is not necessarily to be debt-free before any changes happen, it’s to make your debt manageable under different income scenarios.

Keeping Retirement Savings on Track

It’s tempting to pause retirement contributions during uncertain times to increase cash flow. While this can make sense in some cases, especially if you’re building an emergency fund, be cautious about stopping contributions for too long. Missing even a few months of contributions, especially if your employer offers a match, can have a significant long-term impact.

If you must reduce contributions temporarily, have a plan for when and how you’ll ramp them back up. And if you receive any transition bonuses or lump-sum payments, consider allocating a portion directly to retirement savings once your short-term needs are covered.

How Rockwood Wealth Supports Families During Transition

At Rockwood Wealth, we’ve guided many clients, especially healthcare professionals, through mergers, acquisitions, and other periods of change. Our approach is comprehensive and proactive.

We start by helping you assess your current financial position: cash flow, savings, debt, insurance coverage, and retirement accounts. We then model different scenarios, from “everything stays the same” to “major job change,” so you know exactly how each would affect your finances.