The University of Michigan Health System will cut as many as 80 jobs in December, the University announced Tuesday.
A press release issued Tuesday said the cuts are necessary to maintain financial stability in the midst of the state’s economic recession.
“Despite efforts to meet budget goals through attrition, a hiring freeze for non-clinical positions, and reductions in overtime and temporary positions, reductions in force in a few departments will be necessary,” Health System CEO Doug Strong said in the release.
The 80 employees — about 0.5 percent of the Health System’s total workforce — will be notified during the second week of December and will remain on payroll until January. Those that have worked in the Health System for more than 10 years can remain on the payroll longer.
Earlier this month, the Health System announced plans for a hiring freeze for non-clinical positions like human resources, communications, finance and information technology.
A statement issued on Nov. 4 said that because of recent increases in patient numbers, the Health System will continue to hire doctors, nurses and other positions in patient care while cutting back in other departments.
Health System spokeswoman Kara Gavin told The Michigan Daily earlier this month that the Health System attributed the freeze to problems with the state’s economy and the hospital’s budget, which was $1.5 billion during the last fiscal year. She also said the increase in patient care has led to an increase in treatment of uninsured patients, which is more expensive for the hospital.
The layoffs will be the Health System’s first since 1996, when 200 employees were fired and another 386 employees were transferred to new positions within the Health System or the University.