IU Health announced Thursday it is cutting 800 jobs.
IU Methodist and University Hospital President Jim Terwilliger says the cuts will affect “every level of our organization,” but the Indianapolis Business Journal reports the cuts will focus on the facilities in Central Indiana.
The job cuts will be focused on IU Health’s three downtown hospitals as well as its hospitals in Carmel, Fishers, Muncie and Tipton. The 800 cuts will occur in all areas of those hospitals’ operations, including clinical and administrative staff.
Riley Hospital for Children President and CEO Dr. Jeff Sperring says the cuts are being made due to fewer people seeking medical care and less government funding.
“These decisions clearly are going to be made based on patient care needs,” Sperring says. “This is really based on the fact that we are seeing decreased numbers of admissions and so based on that we know we’re going to make the decisions we need to have the right number of people at the places we need to provide care going forward.”
Terwilliger says the Affordable Health Care Act did play a role in the decision. He says the organization knew a year ago that they would need to cut $1 billion in costs in the next five years, and he says the job cuts are part of that cost-cutting effort.
Dr. Sperring says they do not expect the cuts to affect the care available to patients.
IU Health Bloomington is not a part of Thursday’s layoffs, according the Herald Times, but future layoffs there are possible.
IU Health Bloomington is also searching for cost savings and ways to become efficient, according to an email statement from Mark Moore, its president and CEO.
“Such efforts alone simply aren’t enough; we anticipate that some positions may be eliminated in order to meet our financial targets that are necessary due to shrinking reimbursement,” Moore said in the statement. “The specific number of positions is not known and will be lessened by attrition.”
The employees affected by Thursday’s decision will be notified on Oct. 1 and their last day will be in early December.
IU Health is offering early retirement for those eligible, but those employees have only until September 22 to make that decision.
Network Indiana contributed to this report.