U of Wisconsin Health to trim budget by $80M, cut jobs

Madison-based University of Wisconsin Health set an $80 million financial improvement target to be achieved during the next 18 months.

UW Health CEO Alan Kaplan, MD, said the system will cut jobs to reduce costs. Reduction of agency labor, overtime management and leaving open positions unfilled will be the system's first steps to cut expenses. Dr. Kaplan added when jobs are cut, UW Health will help employees move to any open positions within the system.

The system also plans to trim expenses related to care delivery, supply costs, pharmaceuticals and utilities, among other business costs.

Dr. Kaplan cited an increasing number of patients covered by Medicare and Medicaid, lower commercial payer rates, and "extraordinary" growth in medication and supplies costs as reasons for the cuts.

More articles on healthcare finance:
9 latest hospital credit downgrades
This week's 5 must-reads for hospital RCM leaders
Fitch: Rating downgrades will likely outweigh upgrades for US healthcare companies in 2018

© Copyright ASC COMMUNICATIONS 2017. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months