The affected employees include 15 physicians working at the health system. None of the 175 individuals will receive a severance package but will be offered counseling, according to the report.
The layoffs are in response to a $50 million budget shortfall caused by rising employee pension costs, reductions in Medicaid reimbursements and higher costs for health coverage and supplies. The layoffs come shortly after 77 employees, including 26 nurses and one physician, opted to take voluntary retirement packages in October, according to the report. The workforce reductions are expected to save the health system approximately $19.5 million.
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