Portland, Ore.-based Legacy Health System is preparing to reduce its workforce by 400 employees, according to a Lund Report.
The large layoff is due to a $40 million gap in the system’s budget, including $30 million in Medicaid payment cuts. Administration positions within Legacy’s six hospitals will be hit the hardest, along with its medical group, lab and research functions. Together, those departments will lose 230 positions.
A Legacy spokesperson only said each “senior executive is responsible for some part of the reduction,” and that the system aims to preserve bedside care.
These layoffs were announced in a memorandum to employees, which said Legacy was targeting a $23 million reduction in labor costs and a $17 million-$20 million reduction in other expenses.
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