Franciscan Alliance to Ax 925 Positions

Mishawaka, Ind.-based Franciscan Alliance, a 13-hospital system with locations in Indiana and Illinois, has announced plans to lay off 275 employees and eliminate 650 other positions.

The layoffs will affect 1.4 percent of Franciscan Alliance's 20,000 employees and will only affect employees in the system's 11 Indiana facilities. The other 650 positions will be eliminated through attrition, retirements, closing open positions and reduced employee hours.

This is the second round of layoffs Franciscan Alliance has announced in the last two months: In September, the system cut 125 positions from its Illinois facilities.

The system plans to cut back on benefits offered to remaining employees, as well. Franciscan Alliance will stop its 1.5 percent employer match to 403b retirement savings program, get rid of its paid time off buy-back program and require employees to contribute more for health insurance, according to a news release. Management will also not receive any raises next year.

Franciscan Alliance has been affected by reduced reimbursements and shifts from inpatient to outpatient care, among other industry-wide issues. To remain viable, the system must cut costs by 15 to 20 percent over the next three years, according to the release.

"We are profoundly aware of the impact our decisions have on the lives of our coworkers and their families," Kevin Leahy, president and CEO of Franciscan Alliance, said in the release. "Consistent with our Franciscan values, we will make every effort to support all Franciscan team members through these difficult changes. Those whose jobs will be affected by the workforce reduction will be provided with severance, extended health insurance where eligible and outplacement assistance."

He added, "Whatever measures we take will not compromise our goal to provide patients the high-quality, compassionate care they expect and deserve."

More Articles on Hospital Layoffs:
McLaren Greater Lansing Cuts Positions, Employee Hours
Community Medical Center in Montana Cuts Jobs, Furloughs Employees
Baxter Regional Lays Off 13

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