Nashville, Tenn.-based Vanderbilt University Medical Center has eliminated an unspecified number of positions and paused hiring for “most research and administrative positions” as part of a broader plan to reduce operating expenses, a spokesperson for the health system confirmed to Becker’s.
The workforce cuts are a response to proposed federal funding cuts to medical research and anticipated reductions to Medicaid reimbursement, which could significantly affect the margins under which the academic health system operates.
In a March 26 internal video message, Jeff Balser, MD, PhD, president and CEO of VUMC, told staff that while the job cuts will not affect direct patient care, they are likely to impact support services, including human resources, IT, and various research-related roles, according to WPLN.
“We can’t fully determine the impact of the actions by the administration and Congress, and federal budget reconciliation may not be finished until the fall,” Dr. Balser said. “But we are building a budget for July 1 that achieves $250 million in cost reductions. This is a conservative approach, as VUMC revenue reductions of more than twice this amount are possible in the coming year.”
VUMC did not respond to Becker’s inquiries regarding the number of positions eliminated or the specific departments affected.
Despite the hiring freeze and reductions, VUMC said it will continue to recruit frontline clinical staff to support patient care needs and to prepare for the October opening of the Jim Ayers Tower — a 180-bed, $500 million expansion at Vanderbilt University Hospital designed to meet growing demand for inpatient services.