Hennepin County Medical Center in Minneapolis plans to reduce its workforce next year, according to a Star Tribune report.
HCMC has not yet identified the number of people to be laid off, and it has not indicated which departments will be cut. The system expects to know the scope of the changes by mid-to-late January, according to a statement HCMC provided to the Star Tribune.
"While we have continued to see an increase in patient volume this year, as we finalize the 2017 financial plan it is clear that the increasing cost of salaries, wages and benefits and the rising cost of supplies, equipment and pharmaceuticals, together with public program reimbursements that are less than the cost of providing care, are contributing to the financial challenge," HCMC said in the statement.
News of the layoffs comes as HCMC is poised for a name change. The organization has sought to change its name to Hennepin Healthcare Medical Center to better brand the downtown Minneapolis hospital and its growing health system, according to the report.
The Star Tribune reports the name change would take effect in 2018, coinciding with the opening of a new $224.6 million six-story specialty center downtown.
More articles on leadership and management:
How to improve the payer-provider relationship: 3 experts weigh in
Detroit Medical Center to cut jobs, save $17M: 5 things to know
The next-generation CEO needs these 4 core competencies