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Franciscan Alliance Health System Announces 275 Job Cuts

Franciscan Alliance is laying off 275 workers at hospitals and health facilities around the state.

St. Francis in Indianapolis.

Photo: TownPost Network (Flickr)

The Franciscan Alliance says it has undertaken other measures to reduce costs, such as streamlining patient flow processes and coordinating care across the system.

The Indiana-based health system Franciscan Alliance announced it will cut 275 jobs from the 11 St. Francis hospitals and health facilities around the state.

Another 650 full-time positions will be eliminated by cutting back on hours, closing open positions, retirements and through attrition.

Franciscan Alliance Spokesman Joe Stuteville says 83 of the 275 positions are in Indianapolis. He says the Franciscan Alliance, like other health systems,  must cut its costs of care delivery over the next 3 years by 15 percent to 20 percent to remain viable.

“Most of these cuts take place immediately, there may be some several day lags,” Stuteville said.

The company cites shrinking reimbursements, new payer models and changes brought about by the Affordable Care Act and says the staff reductions are among several initiatives the alliance has taken to reduce costs.

Franciscan Alliance is the newest health organization in Indiana to announce massive cuts. In September, IU Health Systems announced an 800 job reduction and also cited the Affordable Care Act as the reason for the layoffs.

Network Indiana content is included in this report.

Emily Wright

Emily, an Indianapolis native, joined WFIU/WTIU in 2013 as Producer of Noon Edition. She studied Telecommunications and Liberal Arts Management at Indiana University.

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