ObamaCare Consequences? Orlando Health to cut record number of jobs to save money
Reduction of 400 jobs will help position system for health-care overhaul, officials says.
In the largest staff reduction in its nearly 100-year history, Orlando Health is cutting up to 400 jobs starting immediately, hospital system officials announced Monday.
The move is part of a broader effort to position the hospital system for the health-care overhaul, CEO Sherrie Sitarik said.
The elimination of jobs will occur in two phases and represents a 2 percent to 3 percent reduction in the system's 16,000-person work force, said Orlando Health spokeswoman Kena Lewis. The cuts affect all departments and all eight of the system's hospitals, including Orlando Regional Medical Center and Arnold Palmer Hospital for Children, two of the system's better-known facilities.
Orlando Health officials called the cost-cutting moves necessary.
"Health-care reform mandates and changes in reimbursement structures for Medicare and Medicaid are forcing health-care organizations throughout the U.S. to confront new challenges," Sitarik said. "We must find better ways to deliver enhanced value to patients and lower the overall cost of care."
Such cost-cutting measures are happening across the country. On Wednesday, Wake Forest Baptist Medical Center in North Carolina announced that it would cut 950 jobs by June.
Last month, Louisiana State University announced it would cut 1,495 positions as well as programs across its seven hospitals to trim more than $150 million from its budget.
"It's a challenging time for hospitals," said John Bigalke, senior partner of global health care forDeloitte, one of the nation's largest professional services firms.
Hospitals are looking at an $800 billion to $900 billion reduction in Medicare payments over the next 10 years, along with reductions in Medicaid payments, he said.