Mercy Iowa City did not specify the positions affected by the job cuts. However, The Gazette reports most of the affected 65 full- and part-time employees are administrative or support personnel. Overall, the 115 job cuts represent about 8 percent of the hospital’s workforce.
The hospital attributed the decision to cut jobs to healthcare industry financial challenges.
“While Mercy Iowa City is not alone in navigating these challenges, we operate in an extremely competitive local market. Because of these challenges, our volumes and revenues have declined over time, resulting in operating losses for several years. Given this, we are working to improve Mercy Iowa City’s operating and financial performance,” the statement reads.
Hospital officials added they will offer support and assistance to those affected, and that the “changes are necessary to ensure Mercy Iowa City continues to serve a vital role in the community by providing high-quality, affordable care to the patients and families we serve.”
News of the job cuts comes as the hospital has affiliated with West Des Moines, Iowa-based Mercy Health Network. Mercy Iowa City said this affiliation has proved beneficial, and the hospital is focused on an improvement plan.
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